Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500. Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $3,500 in federal income taxes withheld from their paychecks during the course of the year. (Use the 2019 tax rate schedules.)

a. What is Marc and Michelle’s gross income? 76,500

b. What is Marc and Michelle’s adjusted gross income? 72,500

c. What is the total amount of Marc and Michelle’s deductions from AGI?

d. What is Marc and Michelle’s taxable income?

e. What is Marc and Michelle’s taxes payable or refund due for the year?

Sales on account for the first two months of the current year are budgeted as follows.

All sales are made on terms of 2/10, n/30 (2 percent discount if paid in 10 days, full amount by 30 days); collections on accounts receivable are typically made as follows.

Compute the estimated cash collections on accounts receivable for the month of February.

A corporation that has paid the lesser of their current year tax liability or their prior yerar liability may be subject to an underpayment penalty if their total tax liability is equal to or greater than

A company started the year with $185,000 of goods finished and ready for sale. During the year, a total of $700,000 of goods were started in production. Of the goods started, $550,000 were finished during the year.

If total cost of goods sold for the year equals $625,000, the company's ending finished goods inventory equals $

Jenny and Mike are married and earned salaries this year of $72,800 and $15,300, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $1,600 from corporate bonds. Jenny contributed $3,600 to an individual retirement account, and Jenny paid alimony to a prior spouse in the amount of $2,600 (under a divorce decree effective June 1, 2005). Jenny and Mike have a 10-year-old son, Daniel, who lived with them throughout the entire year. Thus, Jenny and Mike are allowed to claim a $2,000 child tax credit for Daniel. Jenny and Mike paid $8,200 of expenditures that qualify as itemized deductions and they had a total of $6,955 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules.)

1. What is Jenny and Mike's gross income

2. What is Jenny and Mike's adjusted gross income

3. What is the total amount of Jenny and Mike's deductions from AGI?

4. What is Jenny and Mike’s taxable income?

5. What is Jenny and Mike’s taxes payable or refund due for the year?

Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)

Compute the duration of a three-year bond, given an annual coupon of 7%, and a current market price of $900. What would be the maturity of a zero-coupon bond with the same duration? (Hint: remember to start with the IRR (YTM) calculation).

Suppose a firm is expected to increase dividends by 10% in one year and by 15% in year two. After that, dividends will increase at a rate of 7% per year indefinitely. If the last dividend was $2 and the required return is 12%, what is the price of the stock?