1. Christine is a self-employed graphic artist who has net earned income of $120,000 from her business. Christine has a defined contribution SEP plan and plans to contribute the amount that provides the maximum deduction allowable. How much can Christine contribute?

2. During the current year, Mr. and Mrs. West paid the following taxes: Property taxes on residence $1,900 Special assessment for installation of a sewer system in their neighborhood $1,200.State personal property tax on their automobile (based on value) $400 Property taxes on land held for long-term appreciation $600. What amount can the Wests deduct as property taxes in calculating itemized deductions for the current year? a. $0 b. $2,300 c. $4,100 d. $2,900

3. The maximum amount of expenses that qualify for the child and dependent care credit is the same for three dependents as it is for two dependents. a. True b. False