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svp [43]
3 years ago
9

John, 45 years old and unmarried, contributed $1,000 monthly in 2018 to the support of his parents' household. The parents lived

alone and their income for 2018 consisted of $500 from dividends and interest. What is John's filing status and how many dependents should he claim on his 2018 tax return?
Business
1 answer:
Alex17521 [72]3 years ago
7 0

Answer:

Head of household; 2 dependents

Explanation:

For filing under 'head of household' status, a taxpayer must fulfill following conditions:

1. Taxpayer must pay more than 50% of household expenses.

2. In the tax year, the taxpayer must be unmarried.

3. The taxpayer must have either a qualifying child or a dependent.

John fulfills all the above conditions.

John is married and take care of his parents' expenses. His parents are dependent on him even though they do not stay with him for the entire year as he has contributed more than half of their living expenses.

Therefore, John can file as 'head of household'.

He can claim 2 dependents on his 2018 tax return, his father and mother.

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3 years ago
A check drawn by a credit union on its account at a federally insured bank would be an example of a:
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3 years ago
On June 15, Oakley Inc. sells inventory on account to Sunglass Hut (SH) for $4,500, terms 4/10, n/30. On June 20, SH returns to
Georgia [21]

Answer: $3360

Explanation:

Based on the information given in the question, the amount of cash paid by SH to Oakley will be calculated as thus:

SH will be entitled to a discount of 4% since the payment was made within the discount period, therefore, the discount that is applicable will be:

= $4500 - $1000

= $3,500

Therefore, the amount of cash payment that is made by SH to Oakley will be:

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= $3500 - (0.04 × $3500)

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7 0
3 years ago
g The company plans a 4-for-1 stock split. How many shares will you own and what will the share price be after the stock split?
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Answer: 14,400; $17

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A 4-for- stock split means that each share will become 4.

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= 14,400 shares

The new price will be;

= 68/4

= $17 per share

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