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Question 1 ( Chapter 3 ) Jack is a head of household filer. He supports two sons, ages 5 and 1 2 , who live

Question 1(Chapter 3)
Jack is a head of household filer. He supports two sons, ages 5 and 12, who live with him. Jack's earned income is $12,000 and his Adjusted Gross Income is $100,000(Jack's income is largely from investments). What is the maximum refund for which Jack might be eligible based on Chapter 3 tax credits only?
Question 2(Chapter 3)
Amanda is a single filer. For 2023, she has the following:
Inheritance from deceased grandmother ,30,000
Interest on Bank of America Corp. bonds ,4,500
Alimony from x-husband*,9,000
Unemployment compensation ,4,000
Proceeds from stolen car sales ,55,000
Itemized deductions ,(14,000)
Long-term capital loss ,(1,500)
*Divorce agreement was executed on June 5,2019.
Please calculate her taxable income.
1
Question 3(Chapter 5)
In 2021, Top Shelf, an accrual method sole proprietorship, sold clothing on credit for $650 to Sarah. In 2022, Top Shelf took a bad debt deduction for the $650. In 2023, Sarah inherited some money and paid Top Shelf the $650 she owed. Top Shelf's owner was in the 22% marginal tax bracket in 2021, the 32% marginal tax bracket in 2022, and the 24% marginal tax bracket in 2023.
(a) Did these events cost Top Shelf money in taxes or save Top Shelf money in taxes? Please circle the appropriate answer.
Cost
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(b) What was the dollar amount of the cost or savings
Please show all work!
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