Concept explainers
a
Introduction:The taxpayers are allowed a credit for expenses on child care and certain other dependents. To avail this, the dependent must be either under the age of 13 or be a dependent or spouse of any age who is incapable of self-care. If the child belongs to divorced parents, the child need not be dependent on the taxpayer claiming the credit.
The amount of child and dependent care credit for W and C, where C earns $27,500 and W has no income and they paid $3,500 for the care of their 3-year-old child.
b
Introduction:The taxpayers are allowed a credit for expenses on child care and certain other dependents. To avail this, the dependent must be either under the age of 13 or be a dependent or spouse of any age who is incapable of self-care. If the child belongs to divorced parents, the child need not be dependent on the taxpayer claiming the credit.
The amount of child and dependent care credit for R and M, where R earns $32,500 and W earned$9,000 and they paid $7,000 for the care of their two children under 13 years.
c
Introduction:The taxpayers are allowed a credit for expenses on child care and certain other dependents. To avail this, the dependent must be either under the age of 13 or be a dependent or spouse of any age who is incapable of self-care. If the child belongs to divorced parents, the child need not be dependent on the taxpayer claiming the credit.
The amount of child and dependent care credit for B, where B is a single taxpayer earns $25,500 and paid $6,700 for the care of two dependent children.
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Chapter 7 Solutions
Income Tax Fundamentals 2020
- general accountarrow_forwardBedrock Company reported a December 31 ending inventory balance of $412,000. The following additional information is also available: -The ending inventory balance of $412,000 included $72,000 of consigned inventory for which Bedrock was the consignor. -The ending inventory balance of $412,000 included $22,000 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year. Based on this information, the correct balance for ending inventory on December 31 is: A) $362,000 B) $390,000 C) $412,000 D) $318,000 E) $340,000arrow_forwardneed answer in this questionsarrow_forward
- Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,000 kayaks and sold 750. at a price of $1,000 each. At this first year-end, the company reported the following income statement information using absorption costing. Sales (750 $1,000) $750,000 Cost of goods sold (750 $450) 337,500 Gross margin 412,500 Selling and administrative expenses 240,000 Net income $172,500 Additional Information: a. Production cost per kayak totals $450, which consists of $350 in variable production cost and $100 in fixed production cost the latter amount is based on $100,000 of fixed production costs allocated to the 1,000 kayaks produced. b. The $240,000 in selling and administrative expense consists of $95,000 that is variable and $145,000 that is fixed. Required: Prepare an income statement for the current year under variable costing.arrow_forwardDon't use ai given answer accounting questionsarrow_forwardOperating expensesarrow_forward
