Evan and Eileen Carter Are Husband and Wife and File

question 104

Multiple Choice

Evan and Eileen Carter are husband and wife and file a joint return for 2017. Both are under 65 years of age. They provide more than half of the support of their daughter, Pamela (age 25) , who is a full-time medical student. Pamela receives a $5,000 scholarship covering her tuition at college. They furnish all of the support of Belinda (Evan's grandmother) , who is age 80 and lives in a nursing home. They also support Peggy (age 66) , who is a friend of the family and lives with them. How many dependency exemptions may the Carters claim?

• A)Two
• B)Three
• C)Four
• D)Five
• E)None of these

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Definitions:

Free-Rider Problem

A situation where individuals consume a public good without contributing to its cost, potentially leading to underproduction or depletion of that good.

Air Pollution

The presence of harmful or excessive quantities of substances in the air, potentially harmful to human health and the environment.

Ventilators

Medical devices used to assist or control breathing by delivering air or a mixture of gases to the lungs.

Nonrival Consumption

A characteristic of certain goods where one person's consumption does not limit or diminish another's ability to consume the same good.