Question

Tony, age 15, is claimed as a dependent by his grandmother. During 2016, Tony had interest income from Boeing Corporation bonds of $1,200 and earnings from a part-time job of $600. Tony's taxable income is:

A.
$1,800 - $800 - $1,050 = ($50)

B.$1,800
C.
$1,800 - $1,150 = $650

D.$1,800 - $1,050 = $750

E.None of these choices are correct.

Answer 1

To calculate Tony's taxable income, sum his interest income and part-time job earnings, and subtract any deductions. The correct answer is $1,800. The correct option is B.

Step-by-step explanation:

To calculate Tony's taxable income, we need to calculate his total income and then subtract any deductions. Tony's total income is the sum of his interest income from Boeing Corporation bonds ($1,200) and his earnings from his part-time job ($600), which equals $1,800.

Next, we need to determine the deductions. As Tony is claimed as a dependent by his grandmother, we can assume that he does not qualify for any deductions.

Therefore, Tony's taxable income is $1,800. So the correct answer is B. $1,800.