Question

Problem 3-27 (LO. 2)

Determine the amount of the standard deduction allowed in the following independent situations. In each case, assume that the taxpayer is claimed as another person's dependent.

Amount of the Standard Deduction a. Curtis, age 18, reports income as follows: $700 interest from a certificate of deposit and $12,200 from repairing cars. $ b. Mattie, age 18, records income as follows: $600 cash dividends from a stock investment and $4,700 from handling a newspaper route. $ c. Mel, age 16, incurs income as follows: $675 interest on a bank savings account and $800 for painting a neighbor's fence. $ d. Lucy, age 15, reports income as follows: $400 cash dividends from a stock investment and $500 from grooming pets. $ e. Sarah, age 67 and a widow, incurs income as follows: $500 from a bank savings account and $3,200 from babysitting. $

Answer 1

Answer

since the year is not given i am assuming it as 2018
a)Grater of 1050 or 350+individual income and here it is 12200+350=12550 and maximum of 12000 for single so it is 12000
b)Greater of 1050 or 350+individual income and here it is 4700+350=5050 and maximum of 12000 for single so it is 5050
c)Greater of 1050 or 350+individual income and here it is 800+350=1150 and maximum of 12000 for single so it is 1150
d)Greater of 1050 or 350+individual income and here it is 500+350=850 and maximum of 12000 for single so it is 1050
e)Greater of 1050 or 350+individual income and here it is 3200+350=3550 and 1550 etxra(since aged greater than 65)=3550+1550=5100 so it is 5100