5. Kerri is single and claims two exemptions. Last year she earned $48,800 in wages. Additional tax information for the year is as follows: interest earned: $229; capital gains from sale of stock: $2,650; penalty on early withdrawal of savings: $400; contributions to Keogh retirement fund: $1,500; real estate taxes paid: $4,500; mortgage interest paid: $4,200. Find the taxable income for the year.

a. $39,912

b. $37,795

c. $33,179

d. $44,150

6. A computer system purchased by Jones Company cost $45,900. Using the MACRS method, calculate the accumulated depreciation at the end of year 3. (Round all dollar amounts to the nearest cent)

a. $36,700.00

b. $33,529.81

c. $32,680.80

d. $30,339.20

The net sales for Casual Fashions, Inc. last year amounted to $1,126,800 and the average inventory at retail was $212,604. The published inventory turnover at retail is 6. Calculate the inventory turnover at retail, and if it is less than the published rate, calculate the target average inventory at retail. (Round your answer to the nearest dollar)

a. $178,800 b. $187,800 c. $212,500 d. Turnover is greater