Mary Lou Is a 22-Year Old Student at Wilson College

question 129

Multiple Choice

Mary Lou is a 22-year old student at Wilson College.She earned $4,300 at a summer job,which is less than half of her support.
I.Mary Lou can claim a personal exemption for herself even if her parents claim her as a dependent.
II.Because Mary Lou is a full-time college student,and she provides less than half of her own support,her parents can claim her as a dependent on their return.
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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:

Understated

Refers to figures or amounts that have been reported lower than they actually are, often affecting financial statements and analysis.

Lower-of-Cost

A principle that dictates inventory should be recorded at either its original cost or the market value, whichever is lower, to avoid overstating assets.

Ending Inventory

The total value of all inventory that a company has in stock at the end of an accounting period.

Inventory Accounting

The process of valuing and tracking physical stock and its cost flow from purchase to sale, used to determine cost of goods sold and inventory balance.