In Which of the Following Circumstances Will Income of the Child

question 4

Multiple Choice

In which of the following circumstances will income of the child be taxed at the marginal tax rate of the child's parent?
I.Martin,age 6,earns $14,000 this year by acting in television commercials.
II.Allen,age 22 and a full time college student,has $4,000 of interest income on municipal bonds that he inherited from his grandfather last year.
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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:

1960s

A decade of significant cultural, political, and technological change, marked by movements for civil rights, space exploration, and the emergence of counterculture.

1970s

A decade characterized by various global events, including economic changes, political realignments, and significant cultural evolution.

1980s

A decade marked by significant cultural, political, and technological changes around the world, including the end of the Cold War and the beginning of the personal computing revolution.

Misery Index

An economic indicator created by adding the unemployment rate to the inflation rate, aiming to measure the health of an economy and the well-being of its citizens.