A little ditty about Jack and Diane; two American kids growing up in the heartland. Yeah, different Jack and Diane. This duo, Jack (52) and Diane (45), has been married for 22 years and are now getting a divorce. They have two sons, Cole (17) and Brody (15). Jack has been working at an architect firm for 22 years and is now a senior VP making $185,000 per year(eligible for $1,200/month from Social Security at 65). Diane is a nail tech at a salon with aspirations of owning her own salon, but currently makes $1,250, bi-weekly (eligible for $375/month from Social Security at 65). Jack will have a pension from the firm that will pay him $2,600/month, beginning at age 65. The pension has an interest rate of 5.5% and Jack is expected to live until he is 79.11 years old. Jack also has stocks valued at $96,000 and a 401(k) plan worth $270,000 to which he contributes the maximum amount annually. Diane has a 401(k) plan valued at $38,000. When Cole was born, Jack and Diane opened a 529 plan to save for college. The 529 is now valued at $36,000 and Diane is the custodian of the account. Jack and Diane paid $90,000 for their first home 21 years ago. They are now in their second home, which has just been appraised at $370,000. They originally purchased the house for $152,000, and the remaining balance on the mortgage is $111,000 with 19 years left to pay. The interest rate is 8%. The monthly payment is $1,100. Over the years they have renovated the kitchen at a cost of $12,000 and painted the exterior of the house at a cost of $5,000. Diane would like to continue living in the home with Cole and Brody. Jack would like to keep his pension and his stock account. He has offered to give Diane the home, 529, her 401(k), and $75,000 from his 401(k). Jack has also offered to take their credit card debt, which has a balance of $14,500 and a 12% interest rate. Jack feels that this offer is more than fair given the fact that he is offering Diane approximately 60% of their assets.20. How much will Diane pay in Medicare taxes the first year after their divorce? a. $471.25 b. $435.00 c. $2,015.50 d. $1,860.00 21. Jack is a senior VP at his firm. Therefore, Diane assumes that Jack has career assets. Which of the following would not be considered a career asset? a. Accrued vacation b. Seniority c. Education d. Use of a company car 22. Which of Jack and Diane's assets must be transferred to an alternate payee using a Qualified Domestic Relations Order (QDRO)? a. 529 Plan b. 401(k) c. Stocks d. Mortgage 23. How often can the exclusion from capital gain tax upon the sale of the principal residence generally be used? a. Every 2 years b. Every 3 years c. Every 4 years d. Every 5 years 24. Which of the following factors is generally not considered when a judge awards spousal support? a. The property settlement. b. The presence of minor children. c. The length of the marriage. d. The income and resources of each spouse's parents. 25. If Diane were to file as Single with both children as dependents after the divorce is final, how many standard deductions will she be able to claim? a. 0 b. 1 c. 2 d. 3