Nia is 12 years old, and her only income is $5,500 of interest income from a bank account with money her parents have given her to save for college. If Nia's parent's taxrate is 35 percent, and Nia's portion of income is taxed at 10 percent, what is Nia's income tax liability?O a $550Ob $1,925O $1A50O&$1,299coC

any money received by a minor child can be categorised into 2 parts 1) Unearned2) EarnedAmount…

Answered: Na is 12 years old, and her only income…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter3: Computing The Tax

Section: Chapter Questions

Problem 41P

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Assume Karen is 12 years old and her only income is $5,500 of interest income from a bank account with money her parents have given her to save for college. If Karen 's parent's tax rate is 35%, and Karen's portion of income is taxed at 10%, what is Karen's income tax liability? a. $1,650 b. $1,265 c. $550 d. $1,925
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