Ricardo owns a small unincorporated business. His 15-year-old daughter Jane works in the business on a part-time basis and was paid wages of $3,000 during the current year. Who is taxed on the child's earnings: Jane or her father? Explain. O A. Since Jane is under age 18 and has earned income, the $3,000 of wages are subject to the kiddie tax rules and are included on the parent's return. OB. Jane is taxed even if her father is the employer. Since Jane has earned income, the $3,000 of wages are not subject to the kiddie tax rules and are not included on the parent's return. This is true even though Jane is under age 18. OC. Since Jane has earned income and her father is her employer, both Jane and father are taxed on $1,500 each. This is true since Jane is under age 18 and she is employed by a family member. O D. Neither Jane nor her father are taxed on the $3,000, since Jane is under age 18 and this is earned income from a related party.

Ricardo owns a small unincorporated business. His 15-year-old daughter Jane works in the business on a part-time basis and was paid wages of $3,000 during the current year. Who is taxed on the child's earnings: Jane or her father? Explain. O A. Since Jane is under age 18 and has earned income, the $3,000 of wages are subject to the kiddie tax rules and are included on the parent's return. OB. Jane is taxed even if her father is the employer. Since Jane has earned income, the $3,000 of wages are not subject to the kiddie tax rules and are not included on the parent's return. This is true even though Jane is under age 18. OC. Since Jane has earned income and her father is her employer, both Jane and father are taxed on $1,500 each. This is true since Jane is under age 18 and she is employed by a family member. O D. Neither Jane nor her father are taxed on the $3,000, since Jane is under age 18 and this is earned income from a related party.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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