In Determining Whether the Support Test Is Met for Dependency

question 44

True/False

In determining whether the support test is met for dependency exemption purposes, only the taxable portion of a scholarship is considered.

---

Definitions:

Marginal Cost

The amount spent on producing an incremental unit of a product or service.

Output

Refers to the amount of product or service produced within a given period by a firm, industry, or country.

Fixed Costs

Expenses that do not change with the level of production or business activity, such as rent, salaries, and utility charges.

Marginal Cost

The charge for the production of one additional unit of a product or service.