The Hutters Filed a Joint Return for 2017

question 61

Multiple Choice

The Hutters filed a joint return for 2017. They provide more than 50% of the support of Carla, Melvin, and Aaron. Carla (age 18) is a cousin and earns $2,800 from a part-time job. Melvin (age 25) is their son and is a full-time law student. He received from the university a $3,800 scholarship for tuition. Aaron is a brother who is a citizen of Israel but resides in France. Carla and Melvin live with the Hutters. How many personal and dependency exemptions can the Hutters claim on their Federal income tax return?

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

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of values.

Expected Returns

The anticipated return on an investment, usually based on historical data and analysis of potential future events.

Diversification

Diversification is an investment strategy that involves spreading investments across various financial instruments, industries, and other categories to reduce exposure to any single asset or risk.

Increase Risk

The action or process of raising the level of danger or the chance of loss in a financial investment or business venture.