[Stgeorge]

Chris, age 5, has $3,000 of interest income and no earned income this year. Assume that the current appli­cable standard deduction is $1,000. How much of Chris’s income will be taxed at Chris’s parents’ maximum tax rate?

A.

$0

B.

$1,000

C.

$2,000

D.

$3,000

So I just had a question regarding this question. I thought the amount was suppose to be 2100 and not 2000. Obviously with an estimated guess you would pick B but I am just wondering since all of the material I had used (Wiley Book & Ninja Book/Notes) say amounts above 2100 are taxed at parents rate.

FAR 81
AUD 65, 84 (Used Ninja MCQ which I say contributed to my huge increase in score I love you Jeff)
REG 87 (CPA excel Wiley Self Study Book, Ninja 10 point combo)
BEC 86! I Must Pass or I lose my FAR Credit, Pray for me(Becker, Wiley, WTB, Ninja MCQ, Ninja Notes)

DONE!!!!!!

Using : Wiley CPA Exam Review Textbook, Wiley TB, Ninja Notes, Ninja MCQ