Larry and Laura Morton have one child. Tina is a 15 year old high sch sophomore. Laura's sister, Meg (23 years old), also lives with them and they furnish over half of her support. Meg earns $3,000 working part-time. Larry and Morton's AGI is $170,000. What are the total amounts of their credits for dependents? (Note: some prior knowledge of dependency status is assumed here - SEE Chapter 3

Larry and Laura Morton have one child. Tina is a 15 year old high sch sophomore. Laura's sister, Meg (23 years old), also lives with them and they furnish over half of her support. Meg earns $3,000 working part-time. Larry and Morton's AGI is $170,000. What are the total amounts of their credits for dependents? (Note: some prior knowledge of dependency status is assumed here - SEE Chapter 3

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Wade (49) and Colleen (50) are married. They have two children, Jacob (20) and Lucella (15), who both lived with their parents all year. Jacob is not a student, but he has a part-time job. Lucella is still in high school. Wade and Colleen provide more than 50% support for both children. Wade's wages were $27,500; Colleen's wages were $17,900; Jacob's gross income was $5,100; Lucella's was $0. 1, What is Wade's correct and most favorable 2019 filing status? 2. Does Wade meet the qualifications for claiming the Child Tax Credit/Additional Child Tax Credit or the Other Dependent Credit? Choose the best answer. Wade is eligible to claim the Child Tax Credit/Additional Child Tax Credit. Wade is eligible to claim the Other Dependent Credit. Wade is not eligible to claim the Child Tax Credit/Additional Child Tax Credit or the Other Dependent Credit. 3. Wade (49) and Colleen (50) are married. They have two children, Jacob (20) and Lucella (15), who both lived with their parents…
Adrienne is a single mother with a six-year-old daughter who lived with her during the entire year. Adrienne paid $2,250 in child care expenses so that she would be able to work. Of this amount, $620 was paid to Adrienne's mother, whom Adrienne cannot claim as a dependent. Adrienne had net earnings of $1,500 from her jewelry business. In addition, she received child support payments of $20,500 from her ex-husband. Use Child and Dependent Care Credit AGI schedule. What amount, if any, of child and dependent care credit can Adrienne claim?
Wade (49) and Colleen (50) are married. They have two children, Jacob (20) and Lucella (15), who both lived with their parents all year. Jacob is not a student, but he has a part-time job. Lucella is still in high school. Wade and Colleen provide more than 50% support for both children. Wade's wages were $27,500; Colleen's wages were $17,900; Jacob's gross income was $5,100; Lucella's was $0. Question 25 of 50. What is Wade's correct and most favorable 2019 filing status? O single. Married filing jointly. O Married filing separately. O Head of household. O Qualifying widow(er). O Mark for follow up Question 26 of 50. Does Wade meet the qualifications for claiming the Child Tax Credit/Additional Child Tax Credit or the Other Dependent Credit? Choose the best answer. O Wade is eligible to claim the Child Tax Credit/Additional Child Tax Credit. O Wade is eligible to claim the Other Dependent Credit. O wade is not eligible to claim the Child Tax Credit/Additional Child Tax Credit or the…
Arnoid is single and has two children in college. Maureen is a sophomore, and Rick in a junior lboth within their first 4 vears of post-secondary educationi. Arnold pays $4.000 in tuition and fees for Maureen and $6.000 for her room and boand. Rick's tuition and fees are $2.000, and his room and board expenses are $3,600. Amolds adjusted gross income is $75.000. What is the maximum amount can he claim as higher education tax credits teither American Opportunity Tax Creditis) or the Lifetime Learning Crediti? CO $2.500 O s3.250 O 4500 O 4.750 O 5.000
Ashley Panda lives at 1310 Meadow Lane, Wayne, OH 43466, and her Social Security number is 123-45-6777. Ashley is single and has a 20-year-old son, Bill. His Social Security number is 111-11-1112. Bill lives with Ashley, and she fully supports him. Bill spent 2019 traveling in Europe and was not a college student. He had gross income of $4,655 in 2019. Bill paid $4,000 of lodging expenses that Ashley reimbursed after they were fully documented. Ashley paid the $4,000 to Bill using a check from her sole proprietorship. That amount is not included in the items listed below. Ashley had substantial health problems during 2019, and many of her expenses were not reimbursed by her health insurance. Ashley owns Panda Enterprises, LLC (98-7654321), a data processing service that she reports as a sole proprietorship. Her business is located at 456 Hill Street, Wayne, OH 43466. The business activity code is 514210. Her 2019 Form 1040, Schedule C for Panda Enterprises shows revenues of $315,000,…
Mary Jane’s father lived with them until his death in November. His only sources of income were salary of $3,800, unemployment compensation benefits of $3,500, and Social Security benefits of $4,100. Of this amount, he deposited $6,000 in a savings account. The remainder of his support of $11,000, which included funeral expenses of $4,500, was provided by John and Mary Jane. Is Mary Jane's father considered a dependant?
Kia Lopez is single (SSN 412-34-5670) and resides at 101 Poker Street, Apartment 12A, Hickory, FL 34714. Her W-2 shows the following: Wages Federal withholding Social security wages Social security withholding Medicare withholding State withholding $ 56,500 5,100 56,500 3,503 819 -0- In 2022, Kia contributed cash of $7,000 to Apartment Rentals Limited Partnership (ARLP) in return for a 13% limited partnership interest. She is an active participant. Kia's shares of ARLP income and losses for the year per her K-1 were as follows: Interest Dividends (qualified) Capital gains (long-term) Rental loss $ 35 290 700 (8,300) ARLP had no liabilities. Kia does not itemize and has no other investments or passive activities. Prepare Form 1040 for Kia Lopez for 2022. You will need Form 1040, Schedules 1, D, E (page 2), Form 6198, and Form 8582. Use the appropriate Tax Tables and Tax Rate Schedules. Note: Input all the values as positive numbers. However, losses should be indicated by a minus sign.…
Sasha owns eight profitable rent properties and would like to shift some of this income to her children, Darius age 17, and Delilah age 11. Darius would be responsible for yard maintenance, snow removal, and other various jobs. Delilah would help her mom clean and maintain the apartment units. What factors should Sasha consider in setting an appropriate income for Darius and Delilah?
Adrienne is a single mother with a six-year-old daughter who lived with her during the entire year. Adrienne paid $2,350 in child care expenses so that she would be able to work. Of this amount, $660 was paid to Adrienne’s mother, whom Adrienne cannot claim as a dependent. Adrienne had net earnings of $1,700 from her jewelry business. In addition, she received child support payments of $20,700 from her ex-husband. Use Child and Dependent Care Credit AGI schedule. Required: What amount, if any, of child and dependent care credit can Adrienne claim?
Marry is single. She has modified AGI of $20,000 and social security benifits of $2,000. The social security benifits Mary must include in gross income is?
Adrienne is a single mother with a six-year-old daughter who lived with her during the entire year. Adrienne paid $2,650 in child care expenses so that she would be able to work. Of this amount, $780 was paid to Adrienne’s mother, whom Adrienne cannot claim as a dependent. Adrienne had net earnings of $2,200 from her jewelry business. In addition, she received child support payments of $21,400 from her ex-husband. Use Child and Dependent Care Credit AGI schedule. Required: What amount, if any, of child and dependent care credit can Adrienne claim?
Kelly is a diligent mother who has just finished supporting her two children, Susan, aged 23, and Randy, aged 25, through their university education. Both Susan and Randy have embarked on their careers and have moved out. Kelly wants to continue supporting them by providing financial assistance for their future endeavors, such as purchasing their first home or pursuing further education. She aims to give each of them an equal amount of money when they reach the age of 30. Currently, Kelly has $15,000 in savings, which she plans to allocate to Randy, as she will reach 30 first. She intends to provide Randy with $35,000. Kelly's investments generate a 6% return before tax, and her marginal tax rate is 35%. The inflation rate is estimated to be 3%.All savings are deposited at the end of the year.Required:(a) Calculate the annual savings Kelly needs to make to accumulate $35,000 to give to Randy when she turns 30.(b) Determine the fair amount Kelly should give to Susan when she reaches 30,…

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