1) Carl and Jenny adopt a Russian orphan. The adoption takes 2 years and two trips to Russia and is finalized in 2016. They pay $6,000 in 2015 and $7,500 in 2016 of qualified adoption expenses. In 2016, Carl and Jenny have AGI of $150,000.

If an amount is zero, enter "0".

If required, carry any division out to four decimal places and round final answers to the nearest dollar.

a. What is the adoption credit Carl and Jenny can claim in 2016? $

b. How much credit could they claim if the adoption falls through and is never finalized? $

c. How much credit could they claim if their AGI was $203,100? $

2) Martha and Lew are married taxpayers with $450 of foreign tax withholding from dividends in a mutual fund. They have enough foreign income from the mutual fund to claim the full $450 as a foreign tax credit. Their tax bracket is 28 percent and they itemize deductions.

Should they claim the foreign tax credit or a deduction for foreign taxes on their Schedule A?

If required, round your answer to the nearest dollar.

3) Jasper is single and a computer software consultant with a college degree. He feels that one of the reasons for his success is that he continually updates his knowledge by taking classes at the local college in various areas related to software design and information technology. This year he spent $2,000 on course tuition and fees.

a. Assuming Jasper has AGI of $92,000, how much lifetime learning credit can Jasper claim on his tax return?

If Jasper were married and supporting a wife who was not working, how much lifetime learning credit can Jasper claim?

b. Assuming Jasper is single and has AGI of $45,000, how much lifetime learning credit can Jasper claim on his tax return? $

Since deducting the taxes will result in a $ tax benefit, they should