Match the Statements That Relate to Each Other

question 69

Multiple Choice

Match the statements that relate to each other.Note: Some choices may be used more than once.
-Kiddie tax does not apply

• A)Not available to 65-year old taxpayer who itemizes.
• B)Exception for U.S.citizenship or residency test (for dependency exemption purposes).
• C)Largest basic standard deduction available to a dependent who has no earned income in 2019.
• D)Considered for dependency purposes.
• E)Qualifies for head of household filing status.
• F)A child (age 15) who is a dependent and has only earned income.
• G)Considered in applying gross income test (for dependency exemption purposes).
• H)Not considered in applying the gross income test (for dependency exemption purposes).
• I)Unmarried taxpayer who can use the same tax rates as married persons filing jointly.
• J)Exception to the support test (for dependency exemption purposes).
• K)A child (age 16) who is a dependent and has only unearned income of $4,500.
• L)No correct match provided.

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Definitions:

Depreciation Purposes

The allocation of the cost of a tangible asset over its useful life for accounting and tax purposes, reflecting its consumption, wear and tear, or obsolescence.

Intra-Entity Asset Transfers

Movements of assets from one part of a business to another within the same corporation, often for accounting or strategic purposes.

Useful Life

The estimated period over which an asset is expected to be usable for its intended purpose, with normal maintenance.

Intra-Entity Transactions

Transactions that occur between entities within the same parent company, which may need to be eliminated in consolidated financial statements.