Paul wishes to claim the Child Tax Credit by claiming his nephew, Jack, as a qualifying child dependent. Jack has an ITIN. Paul
brings in Jack's middle school records showing that Jack's address is Paul's address. Assuming all the eligibility requirements are met, what additional questions should the Tax Professional ask to meet the due diligence requirements for this credit?
Does the child receive social security disability income? Is the child disabled?
Do the child's parents live with you? Why are the parents not claiming the dependent?
How did you keep track of your business income and expenses?
For what portion of the year has the child resided in the United States? How long has the child lived with you?
Does the child receive social security disability income? Is the child disabled?
Do the child's parents live with you? Why are the parents not claiming the dependent?
How did you keep track of your business income and expenses?
For what portion of the year has the child resided in the United States? How long has the child lived with you?
1 answer:
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The numerator of the return on common stockholders' equity is net income minus preferred dividends.
Option d
<u>Explanation:</u>
Return on common stockholders' equity which is also named as return on equity (ROE) ratio evaluates the accomplishment of a company in resulting income for the benefit of common stakeholders.
<em>Use of return on equity:</em>
- Isolates common equity returns
- Can be used to evaluate dividends
- Evaluates the use of capital by the management
It is calculated by income available for stockholders divided by the total number of common stock and is expressed or represented in percentage. Income available for common stockholders can be arrived by reducing preference dividends from Net income.
That is,
Hence, net income minus preferred dividends is the right answer.