Sylvia, Age 17, Is Claimed by Her Parents as a Dependent

question 41

Multiple Choice

Sylvia, age 17, is claimed by her parents as a dependent. During 2017, she had interest income from a bank savings account of $2,000 and income from a part-time job of $4,200. Sylvia's taxable income is:

• A)$4,200 - $4,550 = $0.
• B)$6,200 - $5,700 = $500.
• C)$6,200 - $4,550 = $1,650.
• D)$6,200 - $1,000 = $5,200.
• E)None of these.

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Definitions:

Interest-Rate Cost

The expense associated with borrowing money, reflected as a percentage of the total amount borrowed.

Optimal R&D

The most efficient level of investment in research and development activities that maximizes the benefit to a company or society.

Venture Capital

Funding given to startups and small businesses by investors who see potential for significant growth over time.

Start-Ups

Businesses in their early stages of operation, often characterized by innovative ideas and solutions to market needs, seeking to grow and establish themselves.