Mr and Mrs

question 118

Multiple Choice

Mr. and Mrs. Vonce, both age 62, file a joint return for 2014. They provided all the support for their daughter who is 19 years old, legally blind, and who earns no income. Their son, age 21 and a full-time student at a university, had $4,200 of income and provided 70 percent of his own support during 2014. How many exemptions may Mr. and Mrs. Vonce claim on their 2014 tax return?

• A)2
• B)3
• C)4
• D)5
• E)None of the above

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit.

Bond Premium

Bond Premium is the difference by which the price paid for a bond exceeds its face value, typically occurring when the bond's interest rate is higher than the current market rate.

Straight Line Amortization

A method of gradually reducing the cost value of an intangible asset over a fixed period of time through regular fixed payments.

Effective Tax Rate

The average rate at which an individual or a corporation is taxed, calculated by dividing the total tax paid by the taxable income.