79) Dave, age 59 and divorced, is the sole support of his mother age 83, who is a resident of a local nursing home for the entire year. Dave's mother had no income for the year. Dave's filing status and exemptions claimed are
A) head of household and one exemption. B) single and one exemption.
C) head of household and two exemptions. D) single and two exemptions. Answer: C
Explanation: C) Dave's mother qualifies as his dependent; therefore, he gets two exemptions. He
qualifies as head of household since a taxpayer with a dependent parent qualifies even if the parent does not live with the taxpayer.
Page Ref.: I:2-23 Objective: 3
80) Liz and Bert divorce and Liz receives custody of their child. Bert is ordered by the court to pay child support of $10,000 per year, and Liz agrees in writing to allow Bert to claim the dependency exemption for the child. If Liz maintains the home in which she and her child live, her filing status and exemptions claimed will be
A) single and one exemption. B) single and two exemptions.
C) head of household and one exemption. D) head of household and two exemptions. Answer: C
Explanation: C) Liz gets a personal exemption for herself. A taxpayer with a qualifying child satisfies the head of household requirement even if the taxpayer releases the dependency exemption to the child's other parent.
Page Ref.: I:2-23; Example I:2-27 Objective: 3
81) The filing status in which the rates increase most rapidly is A) single.
B) head of household.
C) married filing separately. D) married filing jointly. Answer: C
Explanation: C) The rates on the married filing a separate return schedule increases more rapidly than other individual rate schedul