Question

During 2019, Montoya (age 15) received $2,350 from a corporate bond. He also received $750 from a savings account established for him by his parents. Montoya lives with his parents and he is their dependent. What is Montoya's taxable income?

Answer 1

Answer:

Montoya's taxable income = $2050

Explanation:

given data

received corporate bond = $2,350

received savings account = $750

to find out

Montoya's taxable income

solution

first we get here interest income that is

interest income = received corporate bond  + received corporate bond

interest income = $2350 + $750

interest income = $3100

and we know that here standard deduction for dependent person tax return is = $1050

so here  Montoya's taxable income will be

Montoya's taxable income = $3100 - $1050

Montoya's taxable income = $2050