In 2021, Laureen is currently single. She paid $2,600 of qualified tuition and related expenses for each of her twin daughters Sheri and Meri to attend State University as freshmen ($2,600 each for a total of $5,200). Sheri and Meri qualify as Laureen’s dependents. Laureen also paid $1,850 for her son Ryan’s (also Laureen’s dependent) tuition and related expenses to attend his junior year at State University. Finally, Laureen paid $1,350 for herself to attend seminars at a community college to help her improve her job skills.What is the maximum amount of education credits Laureen can claim for these expenditures in each of the following alternative scenarios? (Leave no answer blank. Enter zero if applicable.)b. Laureen’s AGI is $95,000.| Description | Credits ||----------------------------------------|---------|| American opportunity tax credit | || Lifetime learning credit | |

Answered: Image /qna-images/answer/70e23d2d-986b-403f-986e-a6c83d329219.jpg

Answered: In 2021, Laureen is currently single.…

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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Phil and Susan Hammond are married taxpayers filing a joint return. The couple have two dependent children. Susan Hammond has wages of $34,000 in 2019. Phil does not work due to a disability, but he is a buyer and seller of stocks. He generally buys and holds for long-term gain but occasionally gets in and out of a stock quickly. The couple's 2019 stock transactions are detailed below. In addition, they have $2,300 of qualifying dividends. What is Phil and Susan's AGI? Phil and Susan have a net short-term capital gain of $_______ (Side note: 3000 is wrong) and a net long-term capital loss of $2500.
Hanshaben
Reba divorced her husband several years back. In the current year (2020), she received $87,000 in salary, $25,000 in child support from her ex-husband, and $4,500 in interest income. Her three children, Cheyenne, Jake, and Kyra, lived with her this year but only Jake and Kyra qualify as her dependents and count as qualifying persons for determining filing status. In addition, she has $6,000 in total itemized deductions available for the year. Assume she is not subject to AMT, is not self-employed, does not qualify for any additional tax credits, and has not made any prepayments of tax for the year. What filing status should Reba use for her 2020 tax return? Regardless of your answer in a., assume that Reba used Single as her filing status in 2020. Use the information above, the appropriate Federal Tax Schedule and other values from Appendix D, and the individual tax formula to calculate Reba’s 2020 tax due at the end of the year. Regardless of your answer in a., assume that Reba…
The Samsons are trying to determine whether they can claim their 22-year-old adopted son, Jason, as a dependent. Jason is currently a full-time student at an out-of-state university. Jason lived in his parents' home for three months of the year, and he was away at school for the rest of the year. He received $9,500 in scholarships this year for his outstanding academic performance and earned $4,800 of income working a part-time job during the year. The Samsons paid a total of $5,000 to support Jason while he was away at college. Jason used the scholarship, the earnings from the part-time job, and the money from the Samsons as his only sources of support. Required: Can the Samsons claim Jason as their dependent? Assume the original facts except that Jason's grandparents, not the Samsons, provided Jason with the $5,000 worth of support. Can the Samsons (Jason's parents) claim Jason as their dependent? Assume the original facts except substitute Jason’s grandparents for his parents.…
Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo: Insurance $ 4,400 Mortgage interest Property taxes Repairs & maintenance Utilities 7,250 4,100 700 4,700 16,800 Depreciation During the year, Alexa rented out the condo for 130 days. She did not use the condo at all for personal purposes during the year. Alexa's AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income. Assume that in addition to renting the condo for 130 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $50,250 of gross rental receipts and her itemized deductions exceed the standard deduction before considering expenses associated with the condo and that her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to rental use of the home. Answer the following questions: Note…
Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo: Mortgage interest Property taxes Insurance Repairs & maintenance Utilities Depreciation $ 7,925 2,760 2,950 1,875 4,400 16,875 During the year, Alexa rented out the condo for 100 days and received $23,800 in gross rental receipts. She did not use the condo at all for personal purposes during the year. Alexa's AGI from all sources other than the rental property is $120,000. Alexa has no sources of passive income. (Leave no answer blank. Enter zero if applicable.) What effect does the rental activity have on Alexa's AGI? Alexa makes all decisions with respect to the property. AGI
Jim and Mary Jean are married and have two dependent children under the age of 13. Both parents are gainfully employed and earn salaries in 2021 as follows: $130,000 (Jim) and $5,200 (Mary Jean). To care for their children while they work, Jim and Mary Jean pay Eleanor (Jim’s mother) $5,600. Eleanor does not qualify as a dependent of Jim and Mary Jean. Jim and Mary Jean file a joint Federal income tax return. Compute their credit for child and dependent care expenses.
Jim and Mary Jean are married and have two dependent children under the age of 13. Both parents are employed outside the home and, during 2021, earn salaries as follows: $130,000 (Jim) and $5,200 (Mary Jean). To care for their children while they work, they pay Eleanor (Jim's mother) $5,600. Eleanor does not qualify as a dependent of Jim and Mary Jean. Assuming that Jim and Mary Jean file a joint tax return, what, if any, is their credit for child and dependent care expenses? $???
Jordan owns and operates Jordan's Exotic Journeys (JEJ), a sole proprietorship. JEJ sponsors a profit- sharing plan. Jordan had net income of $150,000 and paid self-employment taxes of $20,000 (assumed) during the year. Jordan has decided to make a 15% contribution for her employees for the year. Assuming Jordan is over the age of 50, what amount will she contribute for herself to the plan for 2019? a. $16,957. b. $18,261. c. $28,000. d. $56,000.
Donald, a wealthy banker, has a 24-year-old son, Junior, that has struggled to keep a job. In 2018, Junior generated wage income of $17,000. Junior is not a dependent of Donald and Junior’s 2018 tax liability is $500. Donald is considering gifting Junior some funds if he agrees to contribute the gift to an IRA in 2018. What is the maximum amount Donald can give that will not exceed Junior’s maximum Saver’s Credit in 2018? $_______________________
D is a single dad and has modified AGI of $52,000. This year D’s son begins studying for his bachelor’s degree as a half-time student at Arapahoe County Community College. On September 1, D pays $2,500 in qualified tuition for his son’s first semester. Determine the amount of credit available to D.
Ava and her husband, Leo, file a joint return and are in the 24% tax bracket in 2019. Ava’s employer offers a child and dependent care reimbursement plan that allows up to $5,000 of qualifying expenses to be reimbursed in exchange for a $5,000 reduction in the employee’s salary (Ava’s salary is $75,000). Because Ava and Leo have two minor children requiring child care that costs $5,800 each year, Ava is wondering if she should sign up for the program instead of taking advantage of the credit for child and dependent care expenses. Analyze the effect of the two alternatives. How would your answer differ if Ava’s salary was $30,000, their AGI was $25,000, and their marginal tax rate was 10%?

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