Trudy is Jocelyn's friend. Trudy looks after Jocelyn's four-year-old son during the day so Jocelyn can go to work. During the year, Jocelyn paid Trudy $4,030 to care for her son. What is the amount of Jocelyn's child and dependent care credit if her AGI for the year was $30,300? (Exhibit 8-9)

a. $0

b. $810

c. $ 1,088

d. $3,000

Brandon, an individual, began business four years ago and has sold 1231 assets with $5,650 of losses within the last 5 years. Brandon owned each of the assets for several years. In the current year, Brandon sold the following business assets:

Asset	Original Cost		Accumulated Depreciation		Gain/Loss
Machinery	$	31,300	$	8,300	$	10,650
Land		53,000		0		26,500
Building		116,000		33,000		(18,000	)

Assuming Brandon's marginal ordinary income tax rate is 32 percent, what effect do the gains and losses have on Brandon's tax liability?

Use Dividends and Capital Gains Tax Rates for reference. 2018

a. $19,150 ordinary income, $6,128 tax liability .

b. $19,150 1231 gain and $2,783 tax liability.

c. $5,200 1231 gain, $13,950 ordinary income, and $5,244 tax liability.

d. $13,950 1231 gain, $5,200 ordinary income, and $3,757 tax liability.

e. none of the choices are correct.

EXHIBIT 8-9 If AGI is over Child and Dependent Care Credit Percentage then the but not over percentage is 35% 15,000 17,000 19,000 21,000 34 33 23,000 $ 0 15,000 17,000 19,000 21,000 23,000 25,000 27,000 29,000 31,000 33,000 35,000 37,000 39,000 41,000 43,000 25,000 27,000 29,000 31,000 33,000 35,000 37,000 39,000 41,000 43,000 No limit