PROBLEM FIFTEEN (10 pts. total)

PART A

Marco Co. incurs research expenditures that include $70,000 of in-house wages, $10,000 of in-house supplies, and a $90,000 payment to DFG Inc. for research services. Assuming that the base amount is $60,000, what is the amount of qualified research expenditures and the research activities credit for Marco Co.?

PART B

Washington Company hires nine individuals who are certified to be members of a qualifying target group. Four employees work 200 hours a year each. They each earn a wage of $3,200 during the year. The other five employees earn wages of $9,000 during the year and worked 700 hours a year individually. Determine the amount of Washingtons Work Opportunity Credit.

PART C

Emily has three children under age 13 and one child who is 19. She works full-time while her spouse, Carter, attends college full-time for ten months of the year. The children live with Emily and Carter and the couple provides the majority of their support. Emily earns $47,000 and incurs $6,400 of child-care expenses. Assume that the couple files a joint return. Determine the amount of any child and dependent care credit and child/dependent tax credits that the couple can claim on their return.

PART D

Abby is single, earns a salary of $310,000 and has no unearned income during 2022. Determine the amount of FICA taxes that should be withheld by her employer.

PART E

Harry, a U.S citizen, owns and operates a business. During 2022, Harry reports taxable income of $115,000: $50,000 from foreign sources and $65,000 from U.S. sources. Foreign income taxes of $17,500 are paid on the foreign source income. Harry files a joint return and claims the standard deduction. What is Harrys foreign tax credit?