The Child and Dependent Care Credit Entitles Qualifying Taxpayers to a Credit

question 165

True/False

The child and dependent care credit entitles qualifying taxpayers to a credit equal to the full amount of qualified expenses.

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Definitions:

Capital Lease

A capital lease is a lease agreement that is structured so that the lessee effectively becomes the owner of the asset for accounting purposes, usually for long-term assets.

Lease Liability

An obligation representing the present value of future lease payments a lessee is committed to make under a lease agreement.

Cost of Capital

The rate of return that a firm must earn on its project investments to maintain its market value and attract funds.

Residual Value

The estimated value that an asset will realize upon its sale at the end of its useful life.