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MrAnd MrsMcMurray Have Three Children Ages 3,6,and 12 for Which They

Question 120

Multiple Choice

Mr.and Mrs.McMurray have three children ages 3,6,and 12 for which they paid $6,000 in child care expenses this year.Assume the McMurray's tax liability is initially calculated to be $10,000.Then apply a 20% tax credit for child care expenses within limits normally allowed.How much will their final tax liability be?


A) $ 8,000
B) $ 8,500
C) $ 8,800
D) $ 9,040
E) $10,000

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