In Which of the Following Circumstances Will Income of the Child

Multiple Choice

In which of the following circumstances will income of the child be taxed at the tax rates applicable to estates and trusts?
I.Nicole, age 17, has $4,000 of interest income from Microsoft bonds.
II.Catherine, age 19, has $2,000 of royalty income from oil producing property.
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A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements are correct.
D) Neither statement is correct.