78.Kahn is 21 years old and a full-time student. He lives at home with his parentsand pays less than half of his support. During the year, he earns $5,900working as a sales clerk in a department store.The first issue is whether Kahn is a dependent of his parents. Kahnwould be dependent under the qualifying child rules. He meets the agetest (full-time student under 24 years of age), principal residence test,non-support test (he does not pay for than one-half of his support),relationship test and citizenship test. The second issue is whether Kahnhas to file a tax return. Since his income is more than the standarddeduction amount of $5,150, he must file a tax return.79.Lois is single. She provides more than 50% of the support for her mother wholives in a nursing home. Her mother receives $4,000 from Social Security and$7,000 in dividends.There are two issues. The first is whether Lois's mother qualifies as herdependent. The second is whether Lois can file as head of household.Lois’s mother can only qualify as a dependent under the qualifyingrelative rules. Under these rules, her mother will not qualify as adependent because her gross income ($7,000) exceeds the personalexemption amount of $3,300. Since her mother does not qualify as herdependent, Lois cannot file as head of household.80.Hector is 66 years of age. During the year, his wife dies. The issue is to determine Hector's filing status for the current year.Hector is considered married for the current year and would file using themarried filing joint tax rates. Based on the information provided, Hectorwould file as single in the subsequent year. 81.Myrth is 67, single, and has poor hearing. She pays $300 for specialequipment attached to her phones to amplify a caller's voice.The issue is whether the special equipment qualifies as a medicalexpense deduction. The cost of the special equipment is a deductiblemedical expense because it was purchased by the taxpayer primarily tomitigate his condition of deafness. Instructor's Note: This issue identification problem is based on Rev. Rul.71-48, 1971-1, CB 99.