Acc 403 Fall 2020 Homework #1 Please show your work using good form. 1. Cindy (age 41) is a surviving spouse and provides all the support of her two minor children who live with her (both are under age 16). She also maintains the household in which her parents live and furnished 65% of their support. Besides interest on City of Miami bonds in the amount of $5,500, Cindy's father received $2,400 from a part-time job. Cindy has a salary of $95,000, a short-term capital loss of $2,000, a cash prize of $4,000 from a church raffle, and itemized deductions of $10,500. If she qualifies for the child tax credit and the dependent tax credit, what is her tax liability for tax year 2020? 2. Mary (age 40) is single and provides more than 50% of the support of Tammy la family friend). Jen (a niece, age 18) and John (a nephew, age 18). Both Tammy and Jen live with Mary, but lohn (a French citizen) lives in Canada. Mary earns a salary of $90,000, contributes $5,000 to a traditional IRA, and receives sales proceeds of $15,000 for an RV that cost $65,000 and was used for vacations. She has $8,200 in itemized deductions. Compute Mary's 2020 tax liability including the child and dependent tax credit if applicable. 3. Tina, age 18, is claimed as a dependent by her parents. For 2020, she has the following income: $4,000 wages from a summer job, $1,800 interest from a money market account, and $2,000 interest from City of Chicago bonds. What is Tina's taxable income for 2020? 4. Mike and Jenna are engaged and plan to get married. During 2020, Mike is a full-time student and earns $9,000 from a part-time job, with this income, student loans, savings, and nontaxable scholarships, he is self-supporting. For the year, Jenna is employed and has wages of $61,000 How much income tax, if any, can Jenna save is she and Mike marry in 2020 and file joint return