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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
Brian and Kim have a 12-year-old child, Stan. For 2016, Brian and Kim have taxable income of $52,000, and Stan has nonqualifying dividend income of $4,500 and investment expenses of $250. No election is made to include Stan's income on Brian and Kim's return.
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a. For purposes of the tax on a child's unearned income, calculate Stan's net unearned income.
b. Calculate the amount of Stan's tax at his parents' rate.
c. Calculate Stan's total tax for 2016. Note: Assume a 10% rate on regular taxable income.
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