Taxpayer M, a Sole Proprietor, Hires Her 15-Year-Old Dependent Daughter

Taxpayer M, a sole proprietor, hires her 15-year-old dependent daughter D as an employee of her business.During the year, M pays D a reasonable salary of $6,500 for the work D performs.D put the entire amount of her salary into a savings account for college.Which of the following statements is not accurate?

A) M will claim a $6,500 ordinary business deduction on her current-year tax return.
B) D will report $6,500 of ordinary income on her own current-year income tax return.
C) D may not claim a personal exemption on her own current-year income tax return.
D) M may not claim a dependency exemption for D on M's current tax return.