Note: This problem is for the 2018 tax year. SHOW ALL WORK

Daniel B. Butler and Freida C. Butler, husband and wife, file a joint return. The Butlers live at 625 Oak Street in Corbin, KY 40701. Dan's Social Security number is 111-11-1112, and Freida's is 123-45-6780. Dan was born on January 15, 1967, and Freida was born on August 20, 1968.

During 2018, Dan and Freida furnished over half of the total support of each of the following individuals, all of whom still live at home:

1. Gina, their daughter, age 22, a full-time student, who married on December 21, 2018, has no income of her own and for 2018 did not file a joint return with her husband, Casey, who earned $10,600 during 2018. Gina's Social Security number is 123-45-6788.
2. Willie, their son, age 20, who had gross income of $6,300 in 2018, dropped out of college in October 2018. He had graduated from high school in May 2018. Willie's Social Security number is 123-45-6787.
3. Ben, their oldest son, age 26, is a full-time graduate student with gross income of $5,200. Ben's Social Security number is 123-45-6786.

Dan was employed as a manager by WJJJ, Inc. (employer identification number 11-1111111, 604 Franklin Street, Corbin, KY 40702), and Freida was employed as a salesperson for Corbin Realty, Inc. (employer identification number 98-7654321, 899 Central Street, Corbin, Ky 40701). Selected information from the W–2 Forms provided by the employers is presented below. Dan and Freida use the cash method.

Freida sold a house on December 30, 2018, and will be paid a commission of $3,100 (not included in the $86,000 reported on the W–2) on the January 10, 2019, closing date.

Other income (as reported on 1099 Forms) for 2018 consisted of the following:

The $382 from First Bank was original issue discount. Dan and Freida collected $16,000 on the First Bank CD that matured on September 30, 2018. The CD was purchased on October 1, 2016, for $14,995, and the yield to maturity was 3.3%.

During the year, Dan participated on a game show and won a cash prize of $7,000.

In addition to the above information, Dan and Freida's itemized deductions included the following:

Sales tax from the sales tax table is $1,860. Dan and Freida made Federal estimated tax payments of $8,000. All members of the family had health insurance coverage for all of 2018. Dan and Freida do not wish to contribute to the Presidential Election Campaign. The Kentucky income tax rate is 4%.

Required:

Compute Dan and Freida’s 2018 Federal income tax payable (or refund due). Use Form 1040 and Schedules 1, 5, B, E and the Qualified Dividends and Capital Gain Tax Worksheet to complete this tax return. If there is a tax overpayment, the Butlers would like a refund. If additional tax is due, assume no underpayment penalty applies.

It may be necessary to complete the tax schedules before completing Form 1040.

• Enter all amounts as positive numbers.
• If an amount box does not require an entry or the answer is zero, enter "0".
• When computing the tax liability, do not round your immediate calculations.
• If required round your answers to the nearest dollar.
• Make realistic assumptions about any missing data.
• Use the Tax Rate Schedule provided. Do not use the Tax Tables.

Note: This problem is for the 2019 tax year.

Daniel B. Butler and Freida C. Butler, husband and wife, file a joint return. The Butlers live at 625 Oak Street in Corbin, KY 40701. Dan's Social Security number is 111-11-1112, and Freida's is 123-45-6780. Dan was born on January 15, 1968, and Freida was born on August 20, 1969.

During 2019, Dan and Freida furnished over half of the total support of each of the following individuals, all of whom still live at home:

1. Gina, their daughter, age 22, a full-time student, who married on December 21, has no income of her own and did not file a joint return with her husband, Casey, who earned $10,600 during 2019. Gina's Social Security number is 123-45-6788.
2. Willie, their son, age 19, graduated high school in May 2019. He is taking a leap year and will not begin college until 2020. He had gross income of $6,300 in 2019. Willie's Social Security number is 123-45-6787.
3. Ben, their oldest son, age 26, is a full-time graduate student with gross income of $5,200. Ben's Social Security number is 123-45-6786.

Dan was employed as a manager by WJJJ, Inc. (employer identification number 11-1111111, 604 Franklin Street, Corbin, KY 40702), and Freida was employed as a salesperson for Corbin Realty, Inc. (employer identification number 98-7654321, 899 Central Street, Corbin, Ky 40701). Selected information from the W–2 forms provided by the employers is presented below. Dan and Freida use the cash method.

Freida sold a house on December 30, 2019, and will be paid a commission of $3,100 (not included in the $86,000 reported on the W–2) on the January 10, 2020, closing date.

Other income (as reported on 1099 Forms) for 2019 consisted of the following:

The $382 from First Bank an original issue discount. Dan and Freida collected $16,000 on the First Bank CD that matured on September 30, 2019. The CD was purchased on October 1, 2017, for $14,995, and the yield to maturity was 3.3%.

Dan participated on a game show and won a cash prize of $7,000.

In addition to the above information, Dan and Freida's itemized deductions included the following:

Sales tax from the sales tax table is $1,860. Dan and Freida made Federal estimated tax payments of $8,000. They have never owned or used any virtual currency, and they do not wish to contribute to the Presidential Election Campaign. The Kentucky income tax rate is 4%.

Required:

Compute Dan and Freida’s 2019 Federal income tax payable (or refund due). Use Form 1040 and Schedules 1, 3, B and the Qualified Dividends and Capital Gain Tax Worksheet to complete this tax return. If there is a tax overpayment, the Butlers would like a refund. If additional tax is due, assume no underpayment penalty applies.

It may be necessary to complete the tax schedules before completing Form 1040.

• Enter all amounts as positive numbers.
• If an amount box does not require an entry or the answer is zero, enter "0".
• When computing the tax liability, do not round your immediate calculations.
• If required, round your answers to the nearest dollar.
• Make realistic assumptions about any missing data.
• Use the Tax Rate Schedule provided. Do not use the Tax Tables.

I NEED HELP WITH FORM 1040 LINES 7a THROUGH 16, & THE QUALIFIED DIVIDENDS AND CAPITAL GAINS TAX WORKSHEET FORM LINES 1, & 24-27

Mercer Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. There has been a long-simmering dispute between the company’s estimator and the work supervisors. The on-site supervisors claim that the estimators do not adequately distinguish between routine work such as removal of asbestos insulation around heating pipes in older homes and nonroutine work such as removing asbestos-contaminated ceiling plaster in industrial buildings. The on-site supervisors believe that nonroutine work is far more expensive than routine work and should bear higher customer charges. The estimator sums up his position in this way: “My job is to measure the area to be cleared of asbestos. As directed by top management, I simply multiply the square footage by $2.80 to determine the bid price. Since our average cost is only $2.31 per square foot, that leaves enough cushion to take care of the additional costs of nonroutine work that shows up. Besides, it is difficult to know what is routine or not routine until you actually start tearing things apart.”

To shed light on this controversy, the company initiated an activity-based costing study of all of its costs. Data from the activity-based costing system follow:

1. Calculating inflation using a simple price index

Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college student’s annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2017, 2018, and 2019.

The cost of each item in the basket and the total cost of the basket are shown for 2017.

Perform these same calculations for 2018 and 2019, and enter the results in the following table.

Suppose the base year for this price index is 2017.

In the last row of the table, calculate and enter the value of the CSPI for the remaining years.

Between 2017 and 2018, the CSPI increased by    . Between 2018 and 2019, the CSPI increased by .

Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply.

A new type of personal transporter, which made it easier to get around places like university campuses, became available for purchase.

Professors required each student to buy eight textbooks, regardless of the price.

The quality of textbooks increased dramatically from 2017 to 2019, with textbook companies bundling new online study aids with their books, but this quality change is hard to measure.

As the price of energy drinks increased relative to the price of coffee between 2017 and 2019, students decreased their consumption of energy drinks and increased their consumption of coffee.

Please show how to Graph the Vector Sets. And Solve for it analytically.

Part A: Experimental Determination of the Equilibrant-

1. Obtain three sets of vectors, two sets of two and one set of three.
2. Use a scale of 1 cm = 10 g. For example, a vector of magnitude 5 cm would be represented by a hanging mass of 50g (5 cm x 10 g/1 cm = 50 g). Record each set of vectors below.

3. Record the value of the equilibrant, mass and angle.

Equilibrant: 142       g @     225      _ for set 1 (Vectors A and B)
Equilibrant:  166              g @  200         _ for set 2 (Vectors A and B)
Equilibrant:     76           g @    60        _ for set 3 (Vectors A, B and C)

Part B: Graphical Determination of Equilibrant-

1. Using the first set of vectors, graphically add the two vectors (using graph paper) to find the resultant.
2. From the resultant, determine the equilibrant. Refer to page 41.
3. Record your results:

Equilibrant:   g @ _ for set 1 (Vectors A and B)
Equilibrant:    g @ _ for set 2 (Vectors A and B)
Equilibrant:   g @ _ for set 3 (Vectors A, B and C)

Part C: Analytical (Mathematical) Addition of Vectors-

1. Calculate the x and y components of each of your vectors and record in the following table.
2. Calculate the magnitude and direction of the resultant R and equilibrant E.

Calculating initial investment : DuPree Coffee? Roasters, Inc., wishes to expand and modernize its facilities. The installed cost of a proposed? computer-controlled automatic-feed roaster will be $138,000. The firm has a chance to sell its 44?-year-old roaster for $35,600. The existing roaster originally cost $59,100and was being depreciated using MACRS and a? 7-year recovery period? (see the table below) . DuPree pays taxes at a rate of 40% on ordinary income and capital gains.

Rounded Depreciation Percentages by Recovery Year Using MACRS for

First Four Property Classes

Percentage by recovery year*

Recovery year

3 years 5 years 7 years 10 years

1 33% 20% 14% 10%

2 45% 32% 25% 18%

3 15% 19% 18% 14%

4 7% 12% 12% 12%

5 - 12% 9% 9%

6 - 5% 9% 8%

7 - - 9% 7%

8 - - 4% 6%

9 - - - 6%

10 - - - 6%

11 - - - 4%

Totals 100% 100% 100% 100%

a. What is the book value of the existing? roaster?

b. Calculate the? after-tax proceeds of the sale of the existing roaster.

c. Calculate the change in net working capital using the following? figures:

d. Calculate the initial investment associated with the proposed new roaster.

Operating cash inflows: A firm is considering renewing its equipment to meet increased demand for its product. The cost of equipment modifications is $1.82 million plus $105,000 in installation costs. The firm will depreciate the equipment modifications under​ MACRS, using a​ 5-year recovery period​ (see table) Additional sales revenue from the renewal should amount to $ 1.13 million per​ year, and additional operating expenses and other costs​ (excluding depreciation and​ interest) will amount to 40% of the additional sales. The firm is subject to a tax rate of 40%. ​(Note​: Answer the following questions for each of the next 6​ years.)

a. What incremental earnings before​ depreciation, interest, and taxes will result from the​ renewal?

b. What incremental net operating profits after taxes will result from the​ renewal?

c. What incremental operating cash inflows will result from the​ renewal?

Rounded Depreciation Percentages by Recovery Year Using MACRS for
First Four Property Classes              
   Percentage by recovery year*          
Recovery year    3 years    5 years    7 years    10 years
1   33%   20% 14% 10%
2 45%   32% 25% 18%
3 15% 19% 18% 14%
4 7% 12% 12% 12%
5   12% 9% 9%
6 5% 9% 8%
7 9% 7%
8 4% 6%
9 6%
10 6%
11 4%
Totals 100%   100%   100% 100%
              

Chiplist is a​ fast-growing manufacturer of computer chips. Direct materials are added at the start of the production process. Conversion costs are added evenly during the process. Some units of this product are spoiled as a result of defects not detectable before inspection of finished goods. Spoiled units are disposed of at zero net disposal value. Chiplist uses the FIFO method of process costing. Summary data and​ weighted-average data for September 2017 are as​ follows:

Chiplist is a​ fast-growing manufacturer of computer chips. Direct materials are added at the start of the production process. Conversion costs are added evenly during the process. Some units of this product are spoiled as a result of defects not detectable before inspection of finished goods. Spoiled units are disposed of at zero net disposal value. Chiplist uses the FIFO method of process costing. Summary data and​ weighted-average data for September 2017 are as​ follows: