Which of the Following Individuals or Couples Qualify for the Child

question 43

Multiple Choice

Which of the following individuals or couples qualify for the child and dependent-care credit?
I.Jeff and Marion are married with 2 children ages 5 and 7.Jeff earns $57,000 and Marion is a part-time graduate student at the local university and also works as a volunteer for the local hospital.When Marion is in class or working as a volunteer,they hire their neighbor to care for the children.During the year they paid $1,200 to their neighbor.
II.Michael is single and earns $75,000.Michael pays $10,000 for a nurse to help care for his father who is disabled and lives with him.Michael is entitled to the dependency exemption for his father.
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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:

Marginal Product

The increase in output that arises from an additional unit of input, holding all other inputs constant.

Power Cords

Electrical cables used to connect appliances and electronic devices to the main electricity supply in order to power them.

Fifth Worker

An example used in economics to illustrate the principle of diminishing returns, where the addition of a fifth worker may lead to a lesser increment in output than the fourth.

Marginal Product

The additional output that can be produced by adding one more unit of a specific input, keeping all others constant.