Lillian and Michael Were Divorced Last Year

question 126

Multiple Choice

Lillian and Michael were divorced last year. Michael has custody of their two children. Lillian pays $8,600 in child support payments during the current year. Michael pays $12,000 in alimony to Lillian. The total cost of supporting the children is $12,500. Michael and Lillian do not have any special agreement about dependents. How many total dependents may Michael claim for the current year?

• A)0
• B)1
• C)2
• D)3
• E)4

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Definitions:

Spending Variance

The difference between the actual spending and the budgeted or planned spending in a given period.

Catering Supplies

Items and ingredients needed for preparing and serving food in a catering setup.

Jobs

Individual units or projects within job costing systems, where costs are tracked separately to determine profitability.

Meals

Food that is prepared and served to individuals or groups, often at set times of day.