Natasha is a self-employed private language tutor. In 2015, she obtained her teaching credentials, hoping to receive a job as a seventh grade public school English teacher. She had the following education expenses for the year:

Tuition to finish her credentials program $5,000

Review course for the Teacher Certification Exam 1,000

Natasha also attended a seminar in Washington, D.C., titled "The Motivated Student". Her expenses for the trip are as follows:

Fee for the course $ 700

Airplane ticket 500

Hotel 1,000

Meals 300

Total$ 2,500

Determine how much of the above expenses are deductible on her Schedule C.

2. Acme Corporation had the following expenses:

1. 1,000 pads of paper embossed with the company logo to hand out at

the Big Time Convention $ 750

2. Display racks to use at the convention center $ 200

3. An all-expense vacation for Susie's 25 years of service award $2,500

4. A golden cone to recognize Wayne's on the job safety record $ 300

Acme has a qualified plan for the job awards. Calculate Acme's total deductions for the above expenses.

3. Patricia and Cliff are married but file separate tax returns. Patricia received a salary of $42,000 and Cliff received $15,000 of dividends from a stock portfolio that is his own separate property.

a.	If Patricia and Cliff live in a common law state, what income should Patricia show on her separate return?
	Salary
	Dividends

b.	If they live in California (a community property state), what income should Patricia show on her separate return?
	Salary
	Dividends