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natta225 [31]
3 years ago
13

Kyle and Alyssa paid $1,000 and $4,000 in qualifying expenses for their two daughters Jane and Jill, respectively, to attend the

University of California. Jane is a sophomore and Jill is a freshman. Kyle and Alyssa's AGI is $137,000 and they file a joint return. What is their allowable American opportunity tax credit after the credit phase-out based on AGI is taken into account?
Business
1 answer:
denis-greek [22]3 years ago
3 0

Answer: $3,500

Explanation:

The American Opportunity Tax Credit is a credit offered by the IRS for educational expenses paid on qualified students in their first 4 years of tertiary education.

The credit offered stands at a 100% of the first $2,000 paid per student. Afterwards this drops to 25% for the next $2,000.

To be able to claim the full credit however, some income conditions must be met. The most relevant to this question is that your Modified Adjusted Gross Income (MAGI) should be $80,000 or less if filing singularly or $160,000 or less if jointly signing as a married couple.

That means that Kyle and Alyssa qualified for 100% of this credit.

They get to claim $1,000 on Jane.

For Jill they get to claim the first $2,000 and then 25% of the next $2,000,

= 25% * 2,000

= $500

= 500 + 2,000

= $2,500

They get to claim $2,500 on Jill.

Total of $3,500 for both Jane and Jill.

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Lindsay and Sandy run a landscaping firm that cuts lawns and prunes trees. Lindsay is more productive than Sandy at both tasks.
ELEN [110]

Answer:

True

Explanation:

A person (or company or country) must specialize in the production of the good or service for which they possess a comparative advantage.

Lindsay has an absolute advantage in both cutting lawns and pruning trees, but that doesn't mean that she has a comparative advantage at both.

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3 years ago
Why is it best to pay expenses for your business with a check, not with cash?
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Because you have proof of what you payed.
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4 years ago
Shen lives in Dallas and runs a business that sells pianos. In an average year, he receives $851,000 from selling pianos. Of thi
Elis [28]

Solution :

1.

The income from renting his showroom that Paolo would receive if he allowed to rent his showroom is a Implicit cost as this is a cost which will not be paid in actual.

The wages as well as the utility bills paid by Paolo is an example of explicit cost as this cost would be paid in actual for the businesses and are added in accounting.

The wholesale amount that Paolo pays for the pianos to the manufacturer is an explicit cost and is aid in actual to the manufacturer.

The salary that Paolo could have earned if he choses to be an accountant will be an implicit cost as this cost is not paid in actual.

2. Paolo's accounting profit can be calculated by :

  Accounting profit = revenue - explicit cost

                                 = 851,000 - 476,000 - 281,000

                                = $ 94,000

3. Paolo's economic profit is :

   Economic profit = accounting profit - implicit profit

                             = 94,000 - 34,000 - 71,000

                              = -11,000

6 0
2 years ago
Below are various transactions that a local corporation had occur during the month. For each transaction, indicate the transacti
Debora [2.8K]

Answer:

Explanation:

As per accounting equation,

Assets =  Liabilities + Owners Equity

Following would be the effect of the transactions:

A. Received $50,000 in cash from sale of common stock

This transaction would increase the assets as cash is an asset at the same time it would increase capital or owners equity by the same amount.

So this will cause an increase in amount on both sides by $50,000

B. Borrowed $20,000 from the local bank by signing a note promising to pay loan plus interest in 2 years

This would result into an increase in the liability by the money borrowed at the same time would increase cash balance i.e the assets.

Thus it will increase the accounting equation by $20,000.

C. Paid $8000 for the purchase of an equipment

This increases the assets balance at the same time reduces the cash balance. Since both equipment and cash are assets, the net effect of the transaction on equation would be NO EFFECT.

D. Provided services to customer on account

This would increase debtors or accounts receivables balance and at the same time would increase sales.

So the effect would be an increase on the assets side of the equation. Also since this represents a credit sale, this would increase the profits which would form part of reserves which in turn increases the owners equity.

Thus, an increase in assets and owners equity which shall increase the equation by $5000

E. Received $ 5000 from customers above

This shall increase cash balance and at the same time reduce debtors balance by $5000. Since both are assets, the transaction will have NO EFFECT.

F. Paid $1,200 for one years worth of insurance in advance

Premium paid in advance is a prepaid expense and an asset. This shall increase prepaid expenses and at the same time reduce cash by the same time so it will have NO EFFECT on the equation.

G. Paid $800 to employees for salaries

This reduces the profits by $800 i.e owners equity and at the same time reduce cash (an asset).

So the equation will decrease by $800.

H. Purchased supplies costing $1,400 on account

This refers to credit purchases which shall increase the purchases balance which in return would reduce profits and hence owners equity. At the same time it will create a liability for creditors which shall increase the balance of liabilities by the same amount. So NO CHANGE

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3 years ago
A "product package" consists of: Multiple Choice the exterior wrapping. the shipping container. a combination of goods and servi
AfilCa [17]

Answer:

Combination of goods and Services

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Product package are basicallyl used to distinguish one brand, product, service or commodity from the other.

It is mostly the totality of what differentiates most products.

A complete product package needs to have any of these(goods, services) or combination of the two if the business offers both.

6 0
3 years ago
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