Kevin Wants to Know If He Can Claim His Brother,Richard,as

question 127

Multiple Choice

Kevin wants to know if he can claim his brother,Richard,as a qualifying relative for income tax purposes.Richard is 18 and is a part-time student at City Community College.He lives with Kevin in his home for the entire tax year.Kevin provides the majority of Richard's support.During the year Richard has the following items of income: ​
Can Kevin claim his brother Richard as a dependent for income tax purposes?

• A)Yes.
• B)No, Richard fails the relationship test.
• C)No, Richard fails the gross income test.
• D)No, Richard fails the student test.
• E)No, Richard fails the residency test.

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or sales, such as raw materials and direct labor.

Target Costing

A pricing method in which the selling price of a product is determined first, and then the target cost is calculated by subtracting the desired profit margin from the selling price.

Selling Price

The fee customers pay to acquire a product or service.

Special Order

A customer request for goods or services that are not part of a company's standard offerings, often requiring unique production or procurement efforts.