Need help with these Im not sure if my answers are correct. Please show work I want to know how you solved it compared to me. Thank you 1. Paco and Marina are married. Paco is 66 years old and Marina is 62 years old. They have adjusted gross income of $100,000 and itemized deductions of $17,500. In 2020, Pacoand Marina will have taxable income of

A) $67,600.

B) $73,900

C) $82,500.

D) $100,000.

2.

Green Corporation is a C corporation. Gary owns all of the stock. During the current year Green Corporation earned taxable income of $1,000,000 and paid a $450,000 dividend to Gary. Which of the following statements is correct?

A) Only Green Corporation will pay taxes. Gary will not pay any taxes due to his holdings in Green Corporation.

B) Green Corporations income will flow through to Gary's tax return, and he will pay the taxes on the $1,000,000 of corporate income.

C) Green Corporation will pay corporate income tax on its earnings, and Gary will pay individual income tax on the dividends.

D) Green Corporation will not pay any taxes, but Gary will pay taxes on the dividend received.

3.

Theresa, age 13, is a dependent of her parents (her parents provided over half of her support). Her only source of income in 2020 is $7,500 of interest income on bonds given her by her grandparents. Theresa's marginal tax rate is 10%, and her parent's marginal tax rate is 37%. Theresa's tax for 2020 is (kiddie tax rules for 2020)

A) $2,071.

B) $2,200

C) $6,400

D) $7,500.

4.

Lincoln, age 14, is a dependent of his parents (his parents provided over half of his support). During 2020, Lincolnsearned income from wages is $5,000 and Lincoln received $2,500 of interest income. The parent's marginal rate is 22% and Lincolns marginal rate is 10%. Lincolns tax is (kiddie tax rules for 2020)

A) $251.

B) $300.

C) $1,850.

D) None of the above.

5.

Horatio and Letitia Smith have one child age 14. Their modified AGI is $430,000 (their tax is $100,090). What is the amount of the child credit to which they are entitled?

A) $0

B) $500

C) $1,000

D) $2,000

6.

Aiko has two dependent children, ages 11 and 13. She earned $42,000 from her job, and her income tax before credits is $1,500. How much of her child tax credit is refundable?

A) $1,200

B) $1,400

C) $2,800

D) $4,000

7.

In December of this year, Nick, a single parent, has redeemed qualified Series EE U.S. Savings Bonds. The proceeds were used to help pay for his daughter's college tuition. Nickreceived proceeds of $12,000 representing principal of $9,000 and interest of $3,000. The qualified higher educational expenses that he paid this year totaled $10,000. Nicks other AGI for 2020 is $82,350. What is the amount of interest income that Nick can exclude from his income this year?

A) $2,000

B) $2,400

C) $2,500

D) $3,000

8.

In December of this year, Nick, a single parent, has redeemed qualified Series EE U.S. Savings Bonds. The proceeds were used to help pay for his daughter's college tuition. Nickreceived proceeds of $12,000 representing principal of $9,000 and interest of $3,000. The qualified higher educational expenses that he paid this year totaled $10,000. Nicks other AGI for 2020 is $82,350. What is the amount of interest income that Nick can exclude from his income this year?

A) $2,000

B) $2,400

C) $2,500

D) $3,000