Tony,age 15,is Claimed as a Dependent by His Grandmother

question 147

Multiple Choice

Tony,age 15,is claimed as a dependent by his grandmother.During 2014,Tony had interest income from Boeing Corporation bonds of $1,000 and earnings from a part­time job of $700.Tony's taxable income is:

• A)$1,700.
• B)$1,700 - $700 - $1,000 = $0.
• C)$1,700 - $1,050 = $650.
• D)$1,700 - $1,000 = $700.
• E)None of these.

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Definitions:

Investment

The act of allocating resources, often financial, into something expecting it to generate income or profit.

Saving

The portion of income not spent on current consumption but set aside for future use.

Fiscal Policy

Policies by the government involving taxes and expenditure to impact the economic situation.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, characterized by significant declines in industrial production, massive unemployment, and deflation.