Jamil and Vicki Have One Child,age 3,for Which They Paid

question 167

Multiple Choice

Jamil and Vicki have one child,age 3,for which they paid $2,500 in child care expenses this year.If they are eligible for the 20% dependent care credit plus the child tax credit,how much will these two credits reduce their tax liability?

• A) $ 500
• B) $1,500
• C) $2,000
• D) $2,500
• E) $3,000

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Period Costs

Period costs are those expenses that are not directly tied to the production of goods or services and are expensed in the period in which they occur, such as administrative and selling expenses.

Goods Manufactured

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