Which of the Following Individuals or Couples Qualify for the Child

question 111

Multiple Choice

Which of the following individuals or couples qualify for the child and dependent-care credit?
I.Lois is single and earns $45,000 for the year. She pays $2,600 in child-care costs for her 8-year-old daughter.
II.Patrick and Carol are married and together they earn $67,000 ($42,000 and $25,000 respectively) . They pay $5,000 in child-care costs for their twin boys, age 11.
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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:

Sales Estimate

An approximation of the future sales of a company over a specific period, based on current data and trends.

Cash Budget

A financial plan that estimates the cash inflows and outflows over a specific period, helping manage cash balance and ensure solvency.

Capital Expenditures

Expenditures that increase the company’s investment in productive facilities.

Cash Receipts

The collection of cash, typically from customers as revenue or from other sources, recorded by a business.