Which of the Following Statements Regarding Personal and Dependency Exemptions

question 105

Multiple Choice

Which of the following statements regarding personal and dependency exemptions is false?

• A)A married couple filing jointly may claim two personal exemptions.
• B)To qualify as a dependent of another,an individual must be a resident of the United States.
• C)An individual who qualifies as a dependent of another taxpayer may not claim a personal exemption.
• D)An individual cannot qualify as a dependent of another as a qualifying relative taxpayer if the individual's gross income exceeds the exemption amount.To qualify as a dependent of another,an individual must be a resident of the United States,Canada,or Mexico.Also,there is no gross income test for a qualifying child.

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Definitions:

Retirement of Shares

The process by which a company buys back its own shares from the marketplace, reducing the amount of outstanding shares.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities; represents ownership equity in a firm.

Par Preferred Stock

A type of preferred stock that has a specified face value (par value) which determines the dividend calculation and has priority over common stock in dividend payments and upon liquidation.

Par Common Stock

The nominal or face value assigned to a share of common stock, as declared in the corporate charter, which has little bearing on the market value of the share.