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I am using these for better learning from an assessment I failed. Any work throughs would be appreciated! 7. In 2020, Dina has two qualifying

image text in transcribedI am using these for better learning from an assessment I failed. Any work throughs would be appreciated!

7. In 2020, Dina has two qualifying children under age 17 which entitle her to a child credit and a head of household filing status. Her salary is $20,500 giving her a tax liability of $185. What is the refundable amount of child credit Dina will receive in this situation? a. $2,800 b. $3,815 c. $2,700 d. $ 0 e. None of the answers provided is correct. 8. Rob, who is in the 30% tax bracket, sells taxable bonds (at no gain or loss) which yielded $700 of interest annually and purchases tax-exempt bonds yielding $600 of annual interest. What is the net cash effect of these transactions to Rob for the year? a. Increases by $110. b. Increases by $810. c. Decreases by $300. d. Decreases by $100. e. None of the answers provided is correct. 9. Eve is 13, an only child, a dependent of her parents, and has wages of $5,900 and interest of $4,000. Her parents have taxable income of $180,000. What is Eve's tax liability for 2020? a. $365 b. $ 0 c. $876 d. $617 e. None of the answers provided is correct. 10. Fred has year 20x1 tax liability of $48,000. He estimates that 20x2 tax liability will be $60,000. Year 20X1 AGI was $160,000. Year 20x2 withholdings from wages will be $38,000. What amount of estimated tax payment must Fred make each quarter to not incur an underpayment penalty for 20x2? a. $4,000 b. $2,500 c. $3,700 d. $5,500 e. None of the answers provided is correct. 11. Pete, who is single and takes the standard deduction, has taxable income of $163,000, tax preferences of $28,000 and a regular tax liability of $33,200. What is his AMT? a. $33,930 b. $ 730 c. $33,200 d. $ 3,340 e. None of the answers provided is correct. 12. Jack, a single taxpayer, has salary of $134,945 and self-employment income of $130,000 in 2020. What is Jack's Additional Medicare Tax for 2020? a. $2,385 b. $ 585 c. $ 135 d. $ 495 e. None of the answers provided is correct

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