Which of the Following Individuals Can Be Claimed as a Dependent

question 154

Multiple Choice

Which of the following individuals can be claimed as a dependent in the current year? (Assume any test not mentioned has been satisfied) .
I.Kelly's mother, Dana, lives with her for 10 of 12 months during the year. Kelly provides all the support for Dana during that time. The other two months were spent with Dana's other daughter, Alice. Dana's annual income consists of $12,750 in Social Security and $1,850 of savings account interest. Kelly may claim Dana as a dependent.
II.Bart is a 22-year-old college student. His tuition of $7,000 is paid by a scholarship he received for his good high school record. He lives with his parents, who also provide him with $450 monthly support. Bart earns $1,950 mowing lawns in the neighborhood for other support. He may be claimed as a dependent of his parents.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Notes Payable

Liabilities represented by formal agreements or promissory notes to pay specific amounts of money at designated times.

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The amount of interest expense that has been incurred (accumulated) but not yet paid as of a specific date.

Interest Expense

The cost incurred by an entity for borrowed funds, typically reported on the income statement.

Accrued Liability

Liabilities recognized on the books before they’re paid for, representing expenses that have been incurred but not yet settled in cash.