Dependency and Personal Exemptions
Read the following tax problem and answer items a-d.
Bob and Donna have been married for 35 years and have filed jointreturns since their marriage. The couple has three children: Jack (age11), Bonnie (age 16), and Margie (age 22). All three children live withBob and Donna. In addition, none of the children provide more than halfof their own support. Margie is a full-time student at a localuniversity and does not have any gross income.
Based on the situation above, answer the following questions:
a. How many personal exemptions can Bob and Donna claim?
b. Assume the original facts, except that Margie is married. She andher husband live with Bob and Donna and they file a joint return. Theyhave a $2,000 tax liability for the year. Can Bob and Donna claim Margieas a dependent on their tax return? Why or why not?
c. Assume the same facts in (b), except that Margie and her husbandreport no tax liability on their joint return. Also, if the couple hadfiled separately, Margie would not have had a tax liability on herreturn, but her husband would have had a $550 tax liability on hisseparate return. Can Bob and Donna claim Margie as a dependent on theirtax return? Why or why not?
d. Assume the original facts except that Margie is married. Margiefiles a separate tax return. Margie’s husband files a separate taxreturn and reports a $550 tax liability on the return. Can Bob and Donnaclaim Margie as a dependent? Why or why not?
Requirements
Clearly identify the requirements being addressed. Explain each ofyour conclusions and cite appropriate authority to support yourposition.
Your paper must meet the following requirements:

Your written paper should be 1-page, plus a title page and a reference page.
Use terms, evidence, and concepts from class readings.
You need to cite at least two sources for this assignment.
Some of the great places to find resources are the Google Scholar (Links to an external site.)Links to an external site. and www.ssrn.com (Links to an external site.)Links to an external site.are arere are
Do not use the textbook as a source.
Your paper must be formatted according to the APA style.