Question
Exercise 12-15 (Algorithmic) (LO. 4) In late 2016, Randy and Rachel Erwin paid $8,825 in legal fees, adoption fees, and other expenses directly related to
Exercise 12-15 (Algorithmic) (LO. 4)
In late 2016, Randy and Rachel Erwin paid $8,825 in legal fees, adoption fees, and other expenses directly related to the adoption of an infant son, Jameson. The adoption becomes final in 2017, and the Erwins then pay an additional $10,149 in adoption fees. Their 2017 AGI amounts to $172,045.
a. Randy and Rachel are eligible for a $ adoption credit in 2017.---------------
b. If the Erwins' 2017 AGI is $218,000, adoption tax credit is $. (Round any division to three decimal places and round your final answer to the nearest dollar.)----------------
Exercise 12-16 (Algorithmic) (LO. 4)
Santiago and Amy are married and file a joint tax return, claiming as dependents their three children, ages 12, 14, and 18. Their AGI is $117,000.
Santiago and Amy's child tax credit is $------------------------------
Exercise 12-17 (Algorithmic) (LO. 4)
Ivanna, who has three children under age 13, worked full-time while her husband, Sergio, was attending college for nine months during the year. Ivanna earned $50,775 and incurred $7,625 of child care expenses.
Below is the percentage chart for this problem.
Computing the Child and Dependent Care Credit
| Adjusted Gross Income | ||||||
|---|---|---|---|---|---|---|
| Over | But Not Over | Applicable Rate of Credit | ||||
| $ 0 | $15,000 | 35% | ||||
| 15,000 | 17,000 | 34% | ||||
| 17,000 | 19,000 | 33% | ||||
| 19,000 | 21,000 | 32% | ||||
| 21,000 | 23,000 | 31% | ||||
| 23,000 | 25,000 | 30% | ||||
| 25,000 | 27,000 | 29% | ||||
| 27,000 | 29,000 | 28% | ||||
| 29,000 | 31,000 | 27% | ||||
| 31,000 | 33,000 | 26% | ||||
| 33,000 | 35,000 | 25% | ||||
| 35,000 | 37,000 | 24% | ||||
| 37,000 | 39,000 | 23% | ||||
| 39,000 | 41,000 | 22% | ||||
| 41,000 | 43,000 | 21% | ||||
| 43,000 | No limit | 20% | ||||
The amount of Ivanna and Sergio's credit for child and dependent care expenses is $.________
Exercise 12-18 (Algorithmic) (LO. 4)
Paolo and Isadora Shaw are married, file a joint tax return, and have one dependent child, Dante. The Shaws report modified AGI of $125,375. The couple paid $6,345 of tuition and $9,270 for room and board for Dante, a fulltime first-year student at Serene College.
For 2017, Paola and Isidora may claim an American Opportunity Credit of $__________
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Managerial Accounting For Undergraduates
Authors: Christensen, Theodore E. Hobson, L. Scott Wallace, James S.
1st Edition
1618531123, 9781618531124
