1. Consider a four-person family consisting of a father, mother, 16-year-old son attending high school, and an 85-year- old grandfather. The grandfather receives Social Security but has no other sources of income. The father and mother provide the majority of the grandfather's financial support because of his expensive in-home medical care. What is the approximate amount of money that the parents would be able to deduct from their adjusted gross income based on their personal exemptions?
$4,000
$8,000
$12,000
$16,000
$20,000
2. When examining a budget, the numbers in it are:
Last month's revenues and expenses
Last year's revenues and expenses
Worst case estimate of revenues and expenses
Realistic projection of revenues and expenes
Desired revenues and expenses