In 2019, what is the earned income credit allowed Don Andersen, a head of household taxpayer, assuming he has adjusted gross income of $9,500 and earned income of $5,000? He maintains his household with his daughter.

1) $2004

2) $2049

3) $2094

4) $0

5) None of the above answers are within $20 (plus or minus) of the correct answer.

Bill Burns purchases furniture from his employer for $5,000 during 2016. The fair market value of the furniture is $8,500. What is Bill's basis in the furniture?

1) $5,000

2) $8,500

3) $12,500

4) $2,500