1. Mary is a single mother with 2 children: Ted, age 14, and Cindy, age 10. Her adjusted gross income (AGI) is $60,000. In the current year, Mary spent $2,000 for after-school care for Ted and $4,000 for after-school care for Cindy. What is Marys dependent care credit for the current year?

   		$600
   		$1,200
   		$1,000
   		$800
   		$0

2. Eileen has a beach house in Freeport, which she rents out every year. In the current year, she rented it for 185 days and vacationed in it for 15 days. Her rental income is $30,000 and her total operating expenses for the beach house are $40,000. She uses the IRS rule to allocate the expenses. Her adjusted gross income (AGI) for the year exclusive of her rental activities is $80,000 and she actively participates in the rental activity. What is Eileens AGI after considering the rental activity?

		$73,000
		$110,000
		$89,726
		$80,000
		$70,000

3. Mary and Joseph are married with 2 children: Jesse, age 15, and Jessica, age 18. For the current year, the couples taxable income is $300,000. What is their tax credit amount related to their children for the current year?

		$2,500
		$0
		$1,000
		$2,000
		$4,000