During 2015,Lisa (Age 66) Furnished More Than 50% of the Support

question 137

Multiple Choice

During 2015,Lisa (age 66) furnished more than 50% of the support of the following persons: ∙ Lisa's current husband who has no income and is not claimed by someone else as a dependent. ∙ ​ Lisa's stepson (age 19) who lives with her and earns $6,000 as a dance instructor.He dropped out of school a year ago. ∙ Lisa's ex-husband who does not live with her.The divorce occurred two years ago. ∙ Lisa's former brother-in-law who does not live with her. Presuming all other dependency tests are met,on a separate return how many personal and dependency exemptions may Lisa claim?

• A)Two
• B)Three
• C)Four
• D)Five
• E)None of these

---

Definitions:

Monopoly Price

The price set by a monopoly, typically higher than in competitive markets, due to the absence of competition.

Economic Profits

Profits exceeding the opportunity costs of all resources used, indicating a return above the normal competition level.

Marginal Revenue

The additional income earned by producing and selling one more unit of a product.

Marginal Costs

The additional cost incurred in producing one more unit of a good or service.