Determine the amount of the Earned Income Credit in each of the following cases. Assume that the person or persons are eligible totake the credit. Use Table 9-3.Required:Calculate the credit using the formulas.Note: For all requirements, do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.a. A single person with earned income of $5,310 and no qualifying children.b. A single person with earned income of $23,700 and two qualifying children.A married couple filing jointly with earned income of $35,510 and one qualifying child.Earned IncomeCredit< Prev8 of 8Next TABLE 9-3* Earned Income Credit Tax Year 2021EIC percentageFor earned income up toMaximum EICPhaseout percentageFor joint filers:Phaseout starts at earned income ofPhaseout ends at earned income ofFor all other filers:None7.65%$7,320$ 5607.65%$ 15,290$ 22,610Number of Eligible ChildrenOne34.0%$ 10,980$3,73315.98%$26,260$ 49,622$9,160Phaseout starts at earned income ofPhaseout ends at earned income of$ 16,480*The dollar amounts in the table are subject to annual adjustments for inflation.$ 20,130$ 43,492Two40.0%$ 15,410$ 6,16421.06%$ 26,260$ 55,529$ 20,130$ 49,399Three or More45.0%$ 15,410$6,93521.06%$ 26,260$ 59,187$ 20,130$ 53,057

Earned income credit refers to the amount which reduced the overall taxes to be paid by an…

Determine the amount of the Earned Income Credit in each of the following cases. Assume that the person or persons are eligible to take the credit. Use Table 9-3. Required: Calculate the credit using the formulas. Note: For all requirements, do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. a. A single person with earned income of $5,310 and no qualifying children. b. A single person with earned income of $23,700 and two qualifying children. c. A married couple filing jointly with earned income of $35,510 and one qualifying child. Earned Income Credit

Determine the amount of the Earned Income Credit in each of the following cases. Assume that the person or persons are eligible to take the credit. Use Table 9-3. Required: Calculate the credit using the formulas. Note: For all requirements, do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. a. A single person with earned income of $5,310 and no qualifying children. b. A single person with earned income of $23,700 and two qualifying children. c. A married couple filing jointly with earned income of $35,510 and one qualifying child. Earned Income Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Tim and Martha paid $19,600 in qualified employment-related expenses for their three young children who live with them in their household. Martha received $1,400 of dependent care assistance from her employer, which was properly excluded from gross income. The couple had $156,850 of AGI earned equally. Use Child and Dependent Care Credit AGI schedule. Required: What amount of child and dependent care credit can they claim on their Form 1040? How would your answer differ (if at all) if the couple had AGI of $139,900 that was earned entirely by Martha?
Conchita Martinez will have a monthly interest and principal payment of $1,867.96. Her monthly real estate taxes will be $58.27 and her monthly homeowner's insurance payments will be $85.59. If her gross monthly income is $6,786.26, find the housing ratio. The housing ratio is (Round to two decimal places as needed.)
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Linda is taking out an amortized loan for $91,000 to open a small business and is deciding between the offers from two lenders.She wants to know which one would be the better deal over the life of the small business loan, and by how much.Answer each part. Do not round intermediate computations, and round your answers to the nearest cent.If necessary, refer to the list of financial formulas. (a) AngeHer credit union has offered her a 8-year small business loan at an annual interest rate of 13.3%. Find the monthly payment.X(b)A savings and loan association has offered her a 9-year small business loan at an annual interest rate of 13.5 %. Find the monthly payment.Suppose Linda pays the monthly payment each month for the full term. Which lender's small business loan would have the lowest total amount to pay off, and by how much? Gredit unionThe total amount paid would be $ less than to the savings and loan association.Try againvings and loan association he total amount paid would be $less…
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This is a Debt Coverage Ratio or DCR question for part a and a CAP rate question for part b]. Wendy is going to purchase a commercial building and is working with a commercial lender at her local bank. The bank has some loan parameters that Wendy must follow. Understanding the rules will allow her to calculate her cash, income, and payment projections. The bank requires a 1.4 debt coverage ratio for her project. Wendy needs to calculate her net operating income or NOI first. The debt coverage ratio is based on this number. Then she will apply for a 20 year loan at 5% with annual payments. Information on the property includes: Gross rents- $780,000 Vacancy 5% Salaries $85,000 Other Fixed Expenses $125,000 Variable Expenses 20% of gross rents. NOI=_________________ Use the NOI and Debt Coverage requirement to calculate the answer. What is the largest annual payment the bank will allow? If Wendy had to buy the property at a 6% CAP (capitalization) rate, what is the asking price?
Required information [The following information applies to the questions displayed below.] Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start- up company. What amount of child and dependent care credit can Julie claim in 2021 in each of the following alternative scenarios? Use Exhibit 8-10 a. Julie paid $2,500 to the day care center and her AGI is $51,000 (all salary). Child and dependent care credit S 1.040 b. Julle paid $6,250 to the day care center and her AGI is $51,000 (all salary). Child and dependent care credit S 2,600 X c. Julle paid $6,500 to the day care center and her AGI IS $125,300 (all salary). Child and dependent care credit d. Julie paid $4,500 to the day care center and her AGI is $400,300 (all salary). Child and dependent care credit e. Julle paid $6,500 to the day care center and her AGI is $14,000 ($4,500 salary and $9,500 unearned Income). Child and dependent care credit
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