Which of the Following Types of Income Is Not Subject

question 30

Multiple Choice

Which of the following types of income is not subject to the "kiddie tax"?

• A)Interest income
• B)Dividend income
• C)Salary income
• D)Capital gains on stock sales
• E)All of the above are subject to the "kiddie tax"

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Definitions:

Warrants

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a security at a specific price before a certain date.

Earnings Per Share

A company's profit divided by the number of outstanding shares of its common stock, indicating profitability.

Total Equity

The total of all ownership interests in a company, calculated as the difference between total assets and total liabilities; also known as shareholders' equity or owner's equity.

Bonds Outstanding

Bonds outstanding are the total amount of bonds issued by a company that are not yet redeemed and are currently held by investors.