Ans) a; There are certain factors to be considered whenever it comes to the part of dependency.
1)In case of Janet's parents, they get $19000 out of which they spend only $8000 and the remaining amount is invested by them. To be considered as tax dependent they needed to have spent more than half of there non-taxable funds.
2)In the case of their children, only Darin will qualify as the tax dependent because he is less than 19 year's of age and he does not pay for his living expenses, where as in case of Andrea and Morgan, the former is of 19 years of age and uses her saving's account so she wont be counted as dependent and Morgan being a 23 year old child she has taken a loan thus not qualifying for tax dependency.
b; The Baker's could have improved the tax result if they would have filed the tax jointly,these would have gave them an opportunity to claim dependent for two persons if they paid for one more person.
Resear Note: Solutions to the Research Problems can be prepared by using the Thomson TOASON uters...
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