Michael,age 42 and Single,has a 13-Year-Old Son,Tony

question 119

Multiple Choice

Michael,age 42 and single,has a 13-year-old son,Tony.Tony resides with his mother,Jennifer,in her home.Pursuant to the terms of their divorce,Michael properly claims Tony as a dependent on his income tax return.Michael pays child support payments to his ex-wife for support of his child.Jennifer does not claim Tony as her dependent but she does bear the economic burden of supporting the household in which they reside.What is the maximum amount of the 2017 standard deduction that Michael qualifies for?

• A)$6,350
• B)$12,700
• C)$9,350
• D)$5,000

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Definitions:

Adverse Selection

A situation in which sellers have information that buyers do not have, or vice versa, affecting the quality of goods or services offered.

Probationary Period

A trial period at the beginning of employment during which an employer can evaluate an employee’s performance and fit with the company.

ISO 9000

A set of international standards for quality management and quality assurance designed to help companies ensure they meet customer and other stakeholder needs.

Adverse Selection

A situation where asymmetric information leads one party in a transaction to select undesirable risks without the other party's knowledge.