Taxable income and the amounts


For each of the following conditions, find out the child%u2019s taxable income and the amounts that would be taxed at the child%u2019s and parents%u2019 rates for the 2012 taxable year:

(a) Marcie inherited AT&T, Inc. Corporate bonds from her aunt. This year Marcie received $ 3000 of interest from these bonds. Marcie also received $ 2500 from her part time job as a cashier in the local Publix grocery store. Marcie is 16 years old and her parents claim an exemption for her.

(b) Ron, age 13, works in the local garden center on weekends. During the year, he earned $ 6,600 from this job. In addition, Ron had $ 2,850 of interest income from a Apple, Inc. bonds gifted to him 2 years ago by his grandfather. Ron%u2019s parents claim an exemption for him.

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Mathematics: Taxable income and the amounts
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