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tresset_1 [31]
3 years ago
6

Durell and Earline are married, file a joint return, and their two children, ages 5 years and 6 months, qualify as dependents. A

lso, Earline's 18-year-old son from a previous marriage and not a full-time student, qualifies as a dependent. Durell and Earline's combined AGI is $68,000 Which children are "qualifying children" for the purposes of the child tax credit? Durell and Earline's child tax credit is____________.
Business
2 answers:
MrRissso [65]3 years ago
7 0

Answer:

Durell and Earlines child tax credit is  $2000

They cannot claim for Earline's son because his age is more than 17 years.

Explanation:

The child tax credit limit is 1000 for each dependant child.  

To qualify for the purposes of tax credit, a child means a child who is 17 years of age or less and who has stayed with the parents for more than 6 months. This also applies to a child who is born in that year and technically havent stayed with the parents for 6 months.

For a married couple filing a joint return the threshold limit for AGI is 110000

So, in the above problem Durell and Earline are married and their AGI Is 68000 which is well below the threshold limit.

Also, the two children eligble for tax credit are the two young ones

So, Durell and Eralines tax credit will be $1000 for each child that is $2000

Durell and Earlines child tax credit is  $2000

They cannot claim for Earline's son because his age is more than 17 years.

Delvig [45]3 years ago
5 0

Answer:

$2000

Explanation:

1000x2=2000 child tax credit

AGI is lower then 110,000 for joint filling.

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4 0
3 years ago
The Graber Corporation’s common stock has a beta of 1.8. If the risk-free rate is 5.8 percent and the expected return on the mar
Murljashka [212]

Answer:

16.96%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 5.8% + 1.8 × (12% - 5.8%)

= 5.8% + 1.8 × 6.2%

= 5.8% + 11.16%

= 16.96%

The (Market rate of return - Risk-free rate of return)  is also called market risk premium

3 0
3 years ago
Smith buys and sells equity securities. On December 15, 2021, Smith purchased $542,000 of Jones shares and elected the fair valu
zimovet [89]

Answer:

$46,000

Explanation:

We can find out the the revaluation gain that need to be reported at the year end by just deducting the the cost of the investment by its current fair value .

DATA

Fair value = 588,000

Cost = 542,000

Revaluation gain = Current fair value - Cost

Revaluation gain = 588,000 - 542,000

Revaluation gain = $46,000

The revaluation gain of $46,000 will be reported in other compreensive income of smith's financial statements.

4 0
3 years ago
A perpetual bond with a par value of $1,000 and a coupon rate of 7.75% has a current market price of $900. What is its yield to
photoshop1234 [79]

Answer: e. 8.61%

Explanation:

This is a perpetual bond so the price is calculable by;

Price = Coupon / Yield to Maturity

Coupon = 7.75% * 1,000

= $77.50

900 = 77.50/ YTM

900 * YTM = 77.50

YTM = 77.50/900

= 8.61%

6 0
3 years ago
A bank quotes a stated annual interest rate of 4.00%. If that rate is equal to an effective annual rate of 4.08%, then the bank
Mrrafil [7]

Answer: Quarterly

Explanation:

Annual interest rate = 4.00%

Effective annual rate = 4.08%

To know if the bank is compounding interest daily or quarterly goes thus:

Effective Annual rate can be calculated using:

= (1+Periodic rate)^number of compounding periods - 1

Therefore, we calculate the daily compounding effective annual rate which will be:

= (1+4%/365)^365 - 1

= (1 + 0.04365)^365 - 1

= 4.08%

For Quarterly EAR, this will be:

= (1+4%/4)^4 - 1

= (1 + 0.04/4)^4 - 1

= 4.06%

Therefore, the a bank is compounding interest Quarterly

6 0
2 years ago
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