Clark, a 12-year-old child, lives with his parents. During the current year, Clark earned $2,400 delivering newspapers. This was his only income. Clark's parents file a joint return and claim Clark as a dependent. Considering this information, which of the following statements is correct? The parents may report Clark's income on their tax return. Clark must use his parents' tax rate to compute his tax liability. Clark's taxable income is $1,450. Clark's taxable income is $0.
None of the above. Rhonda is single and receives the following income during the year: $30,000 taxable pension, $6,000 in social security payments, and $1,000 of interest on State of Iowa bonds. What is Rhonda's adjusted gross income based on the above information? $36,000 $34,500 $33,000 $30,000 None of the above Brian, a calendar-year taxpayer, purchased an annuity contract which started paying him $54 each month on June 1, of the current year. The annuity cost him $2,400, and it has an expected return of $7,200. How much of this annuity is includable in gross income for the current year 0 $378 $126 $252 None of the above