Concerning the Credit for Child and Dependent Care

question 97

Multiple Choice

Concerning the credit for child and dependent care
I.If a taxpayer's adjusted gross income does not exceed $43,000, the child and dependent care credit rate is 30%.
II.Expenditures qualifying for credit can exceed the earned income of the taxpayer.
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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:

Accounting Profits

The difference between total revenue and explicit costs; the net income a firm reports on its income statement.

Total Costs

The aggregate of all expenses associated with manufacturing products or services, which includes fixed and variable costs.

Most Efficient Output

The level of production at which a firm achieves the lowest possible cost per unit, maximizing productivity and minimizing waste.

Short Run

A period in economic analysis where at least one input is fixed and cannot be adjusted by firms, contrasting with the long run where all inputs are variable.