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. EXHIBIT 8-10 Child and Dependent Care Credit Percentage If AGI is over But not over Then the percentage is $       0 $125,000    50% 125,000 127,000 49 127,000 129,000 48 129,000 131,000 47 181,000 183,000 21 183,000 400,000 20 400,000 402,000 19 402,000 404,000 18 434,000 436,000 2 436,000 438,000 1 438,000   0 a. Julie paid $2,340 to the day care center and her AGI is $53,400 (all salary). b. Julie paid $5,850 to the day care center and her AGI is $53,400 (all salary). c. Julie paid $5,700 to the day care center and her AGI is $126,600 (all salary).

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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.

EXHIBIT 8-10 Child and Dependent Care Credit Percentage

If AGI is over But not over Then the percentage is
$       0 $125,000    50%
125,000 127,000 49
127,000 129,000 48
129,000 131,000 47
181,000 183,000 21
183,000 400,000 20
400,000 402,000 19
402,000 404,000 18
434,000 436,000 2
436,000 438,000 1
438,000   0

a. Julie paid $2,340 to the day care center and her AGI is $53,400 (all salary).

b. Julie paid $5,850 to the day care center and her AGI is $53,400 (all salary).

c. Julie paid $5,700 to the day care center and her AGI is $126,600 (all salary).

d. Julie paid $3,700 to the day care center and her AGI is $401,600 (all salary).

e. Julie paid $5,700 to the day care center and her AGI is $14,000 ($3,700 salary and $10,300 unearned income).

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