Robert and Mary File a Joint Tax Return for 2016

question 31

Multiple Choice

Robert and Mary file a joint tax return for 2016 with adjusted gross income of $34,000. Robert and Mary earned income of $20,000 and $14,000, respectively, during 2016. In order for Mary to be gainfully employed, they pay the following child care expenses for their 4-year-old son, John: What is the amount of the child and dependent care credit they should report on their tax return for 2016?

• A)$270
• B)$459
• C)$675
• D)$729
• E)None of the above

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to record unbilled, uncollected, or unpaid transactions, ensuring the financial statements are accurate.

Insurance Expense

The cost incurred by a business or individual for obtaining protection against various risks, recorded as an expense in the accounting period in which it is incurred.

Straight-Line Method

A depreciation method in which an asset's cost is evenly spread over its useful life, resulting in equal depreciation charges each period.