Which of the Following Statements Concerning the Credit for Child

question 1

Multiple Choice

Which of the following statements concerning the credit for child and dependent care expenses is not correct?

• A) A taxpayer is not allowed both an exclusion from income and the credit for child and dependent care expenses on the same amount.
• B) A taxpayer is not allowed both a deduction as a medical expense and the credit for child and dependent care expenses on the same amount.
• C) If a taxpayer's adjusted gross income exceeds $43,000, the rate for the credit for child and dependent care expenses is 20%.
• D) If a taxpayer's adjusted gross income exceeds $15,000 but is not over $17,000, the rate for the credit for child and dependent care expenses is 35%.
• E) All of the above statements are correct.

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Definitions:

Direct Method

A cash flow statement preparation approach that lists major classes of gross cash receipts and payments.

Operating Activities

Business activities related directly to the production and delivery of goods and services, generating revenue and cash flow.

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for changes in non-cash accounts to compute cash flow from operating activities.

Operating Activities

Activities that relate to the core business operations of a company, including production, sales, and day-to-day administration.