In Which of the Following Circumstances Will Income of the Child

question 4

Multiple Choice

In which of the following circumstances will income of the child be taxed at the marginal tax rate of the child's parent?
I.Martin,age 6,earns $14,000 this year by acting in television commercials.
II.Allen,age 22 and a full time college student,has $4,000 of interest income on municipal bonds that he inherited from his grandfather last year.
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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:

Dorsal Root Ganglia

A cluster of nerve cell bodies (neurons) in the dorsal root of a spinal nerve.

Sensory Neurons

Nerve cells that transmit sensory information (sight, sound, feeling, etc.) towards the central nervous system.

ANS Neurons

Autonomic nervous system neurons are specialized cells that control involuntary body functions including heart rate, digestion, and respiratory rate.

Thoracic Nerves

Nerves originating from the thoracic region of the spinal cord, involved in controlling the muscles and sensation in the chest, abdomen, and parts of the back.