Answer: $4850
Explanation:
To calculate the federal income tax for Montague who is a dependent child, we should note that will the standard deduction that is allowable will be the one that is greater between paying $1,050 or the value of the earned income plus $350, but not exceeding $12,000.
This will then be calculated as:
Dividend = $5200
Add: Income from Part time job = $1000
Less: $1000 + $350 = $1350
Taxable income = $4850
