Final answer:
The statement is false. If Donald's dependent friend qualifies as a 'qualifying person' under IRS rules, Donald may indeed qualify for the head-of-household filing status.
Step-by-step explanation:
The statement 'Donald is divorced and maintains a home in which he and a dependent friend live. Donald does not qualify for head-of-household filing status.' is false. To qualify for head-of-household status, a taxpayer must be unmarried or considered unmarried at the end of the tax year, have paid more than half the cost of keeping up a home for the year, and have a qualifying person live with them for more than half the year. If Donald's friend is a dependent who qualifies as a 'qualifying person' according to IRS rules, such as being a non-relative that lived with him the entire year and meets certain support tests, then Donald may qualify for head-of-household filing status.