Paige, age 17, is a dependent of her parents. Her parents report a taxable income of $120,000 on their joint return (no qualified dividends or capital gains). During 2020, Paige earned $3,900 pet sitting and $4,300 in interest on a savings account. What are Paige's taxable income and tax liability for 2020?a. Paige's total taxable income is $ .b. Paige's tax liability is $ .

a. Paige's total taxable income is $3,950.

b. Paige's tax liability is $395.

Explanation:

Since Paige is included in her parents tax filings as a dependent, her standard deduction will be the greater of:

$1,100

or

earned income + $350 = $3,900 + $350 = $4,250

Paige's taxable income = $3,900 + $4,300 - $4,250 = $3,950

Paige's tax liability = $3,950 x 10% = $395

answer; consideration;

yes the correct answer was

b.the increased supply will create a surplus.