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Kimberly is divorced and the custodial parent of a 3-year-old girl named Bailey. Kimberly and Bailey live with Kimberly's parents, who pay all the costs of main- taining the household (such as mortgage, property taxes, and food). Kimberly pays for Bailey's clothing, entertainment, and health insurance costs. These costs comprised only a small part of the total costs of maintaining the house- hold. Kimberly does not qualify as her parent's dependent.

a) Determine the appropriate filing status for Kimberly.

b) What if Kimberly lived in her own home and provided all the costs of main- taining the household?

c) Assume Kimberly qualifies as her parents' dependent. How many personal and dependency exemptions may Kimberly claim on her tax return?

Taxation, Accounting

  • Category:- Taxation
  • Reference No.:- M91579317

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