Calculate the amount of stan''s tax at his parents rate

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Brian and Kim have a 12-year-old child, Stan. For 2015, Brian and Kim have taxable income of $52,000, and Stan has nonqualifying dividend income of $4,500 and investment expenses of $250. No election is made to include Stan's income on Brian and Kim's return.

a. For purposes of the tax on a child's unearned income, calculate Stan's net unearned income.

b. Calculate the amount of Stan's tax at his parents' rate.

c. Calculate Stan's total tax for 2015.

Note: Assume a 10% rate on regular taxable income.

Reference no: EM131798241

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