View PoliciesCurrent Attempt in ProgressThe Smiths have four dependent children, ages 17, 15, 13, and 11. Theypay their 17-year-old $3,200 during the year to watch her youngersiblings after school. They pay their neighbor $5,900 during the year towatch the 13- and 11-year-old before school ($2,950 each). Both Mr.and Mrs. Smith work, earning $46,000 each, and they have adjustedgross income of $98,000. How much is the Smiths' child and dependentcare credit?Child and dependent care creditLA|$

The child and dependent care credit is a tax credit provided to the taxpayers to recover the care…

The Smiths have four dependent children, ages 17, 15, 13, and 11. They pay their 17-year-old $3,200 during the year to watch her younger siblings after school. They pay their neighbor $5,900 during the year to (42.950orch) Roth Mr J11

The Smiths have four dependent children, ages 17, 15, 13, and 11. They pay their 17-year-old $3,200 during the year to watch her younger siblings after school. They pay their neighbor $5,900 during the year to (42.950orch) Roth Mr J11

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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Adrienne is a single mother with a 6-year-old daughter who lived with her during the entire year. Adrienne paid $2,500 in child care expenses so that she would be able to work. Of this amount, $500 was paid to Adrienne’s mother, whom Adrienne cannot claim as a dependent. Adrienne had net earnings of $2,000 from her jewelry business. In addition, she received child support payments of $21,100 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?
Lane is single and has two dependent children. Financial records show the following items in the current year: Gift from a friend Dividends received on stock $12,000 $1,200 $1,000 $35,000 $6,000 $12,000 Price won in state lottery Salary from employer Child support received from ex-spouse Alimony received from ex-spouse How much is Lane's adjusted gross income for the current year? a. $47,000. b. $48,200. c. $49,200. d. $67,200.
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Kyle (44) and Elise (39) Terry have four children. Kyle works for Lockheed Martin as a flight engineer and Elise is a freelance writer/editor. Their family is covered by a qualified High Deductible Health Insurance Plan. Kyle's gross pay is $120,000 nd Elise's net earnings from self-employment is $75,000. Their children are Jacob(16), Katie(14), Rachael(12), and Luke(10). For the current tax year, Kyle and Elise prepared for retirement. Kyle's plan is a profit sharing plan and Elise utilizes a SEP IRA. Kyle's employer contributes 14% of his gross pay to the profit sharing plan. Kyle pays the health insurance premiums through his employer's cafeteria plan, his portion of the health insurance premiums are $7,000 per year. Kyle also incurred the following expenses during the year: $1,900 in student loan interest, $4,000 contribution to Utah's 529 plan ($1,000 for each child, kyle lives in Georgia); State income taxes of $12,000; property taxes of $4,000; mortgage interest of $10,000; and…
Mark and Parveen are the parents of three young children. Mark is a store manager in a local supermarket. His gross salary is $75,000 per year. Parveen is a full-time stay-at-home mom. Use the easy method to estimate the family's life insurance needs.
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?
Adrienne is a single mother with a 6-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, $500 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. Required: What amount, if any, of child and dependent care credit can Adrienne claim?
Richard is age 39 and was widowed in 2017. He has a daughter, Isabella, age 5.• Richard provided the entire cost of maintaining the household and over half of the support for Isabella. In order to work, he pays childcare expenses to Busy Bee Daycare.• Richard declined to receive advance child tax credit payments in 2021.• Richard’s earned income in 2019 was $19,000.• Richard and Isabella are U.S. citizens and lived in the United States all year in 2021.• Richard received the third Economic Impact Payment (EIP3) in the amount of $2,800 in 2021. 30. Richard is not eligible to claim the Qualifying Widower filing status. true or false 31. What is Richard’s adjusted gross income on his Form 1040? A. $41,500 B. $41,580 C. $41,600 D. $41,620 32. Richard is eligible to claim the child…
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…