Satish,age 11,is a Dependent of His Parents

Multiple Choice

Satish,age 11,is a dependent of his parents.His only source of income in 2019 is $8,000 of interest income on bonds given him by his grandparents,resulting in taxable income of $6,900.Under kiddie tax rules,calculation of tax requires dividing taxable income between net unearned income and earned taxable income.Satish's taxable income will be divided as follows:

A) net unearned income -$6,900 and earned taxable income -$0.
B) net unearned income -$5,800 and earned taxable income -$1,100.
C) net unearned income -$0 and earned taxable income -$6,900.
D) net unearned income -$8,000 and earned taxable income -$1,100.