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jeka94
3 years ago
13

Henry, who is not a dependent, states he wishes to claim EITC this year for his 35-year-old dependent child. Both reside in the

U.S. Henry states that the child lives with Henry, is not married, is disabled, and has not worked during the year. What does Henry's tax preparer need to do to determine if the child can qualify Henry for EITC
Business
1 answer:
Evgen [1.6K]3 years ago
3 0

Answer:

in order for Henry's child to qualify as a dependent, the following requisites must be met:

  • since the child is disabled, there is no age limit, but he/she must live with Henry and Henry must pay for at least half of his/her expenses
  • the disability must be permanent and total (a letter from a doctor, social service worker, or social service agency that provides proof of this is required
  • the child must be Henry's son or daughter, or legally adopted child
  • Henry must have earned income (i.e. Henry must work)
  • Henry's investment income (besides earned income) must be less than $3,650 during the last year
  • Henry must file as single filer or head of household
  • Henry must not have received foreign income
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In a long-run equilibrium,
Serga [27]

Answer: Option (d) is correct.

Explanation:

Correct option: Only a perfectly competitive firm operates at its efficient scale.

In the perfectly competitive market and in the long run, the firms who are making losses will exit the market and those firms who are able produce at a point where price is equal to the average total cost will exist in the market.

However, monopolistic firms operates at a below efficient level of production and with an excess capacity.

Competitive firms are generally enjoys the productive efficiency in the long run because these firms have the capability to produce at a lower average total cost.

8 0
3 years ago
Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. Company is currently operating at 75 p
yulyashka [42]

Answer:

Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600 when the fixed costs are not 20 %

Yes Strawberry line should be dropped as it reduces the overall profit by$ 1720 even when the fixed costs are  20 %

Explanation:

Cotrone Beverages

Differential Analysis

                          Totals                    Totals             Difference / Change

                      including    (less)   Without   (equals)

                     Strawberry             Strawberry

Sales                           253,200    167,600           85600  Decrease

Variable costs              201,400   124,200          77200    Decrease

Fixed costs allocated  35,600        28,480          7120    Decrease

<u>Operating profit (loss)   </u><u>13,200       14,920           (1720)     Increase</u>

<u>Working </u>

<u>Total Fixed Costs Reduced will be = </u> 35,600 *20%= 7120

Here we see the profit is increased by 1720 therefore strawberry line should be dropped.

Cotrone Beverages

Differential Analysis

                          Totals                    Totals             Difference / Change

                      including    (less)   Without   (equals)

                     Strawberry             Strawberry

Sales                           253,200    167,600           85600  Decrease

Variable costs              201,400   124,200          77200    Decrease

Contribution margin     51,800       43,400           8,400    Decrease

Fixed costs allocated  35,600        23,600          12000    Decrease

<u>Operating profit (loss)   </u><u>13,200       16,800           (3,600)   Increase</u>

<u></u>

Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600

<u><em>Working </em></u>

<u><em>We find the totals with and without the strawberry product line and then subtract to find the   differential costs</em></u>

Cotrone Beverages

Product                        Original             Strawberry       Orange     Total

Sales                            $65,200            $85,600         $102,400   253,200

Variable costs              44,000              77,200             80,200      201,400

Contribution margin $21,200                $8,400          $22,200       51,800

Fixed costs allocated 9,400                  12,000              14,200     35,600

Operating profit (loss) $11,800               $(3,600)           $8,000     13,200

If we drop the strawberry line then the new totals would be

Product                        Original          Orange      Total

Sales                            $65,200       $102,400   167,600

Variable costs              44,000          80,200      124,200

Contribution margin $21,200          $22,200       43,400

Fixed costs allocated 9,400               14,200     23,600

Operating profit (loss) $11,800           $8,000     16,800

6 0
3 years ago
In the long​ run, a perfectly competitive market will A.supply whatever amount consumers demand at a price determined by the min
In-s [12.5K]

Answer: Option (A) is correct.

Explanation:

Correct Option: A.supply whatever amount consumers demand at a price determined by the minimum point on the typical​ firm's average total cost curve.

In the long run, equilibrium price of a perfectly competitive firm implies that there is no economic profit for the firm. This situation occur when the marginal cost is equal to the average total cost.

The firm is break even when the price is equal to the minimum point of average total cost of the firm. So, there is no possibility of economic profit for the firm.

5 0
3 years ago
The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance a
Natali5045456 [20]

Answer:

Adjusted Balance      31,671

Explanation:

<em>CASH </em>

Balance                       25,497

Service Charge               -11

Collection in firm behalf 7,000

NSF                           -805

accounting mistake       -10

Adjusted Balance          31,671

<em>BANK </em>

Balance                   26,808

Outstanding Check   -3,269

Deposit in transit       8,132

Adjusted Balance      31,671

The goal of the reconciliation is to make up for the unknow information for each party. The bank and the firm We are goin to make jounral entries for all the infoamrition which is unknow to the firm until the bank statement is received.

8 0
3 years ago
Why would applying to as many scholarships as possible reduce your student debt?
Anna35 [415]

Answer:

......................

7 0
2 years ago
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