1.

In 2020, Elaine paid $2,440 of tuition and $1,160 for books for her dependent son to attend State University this past fall as a freshman. Elaine files a joint return with her husband.

What is the maximum American opportunity tax credit that Elaine can claim for the tuition payment and books in each of the following alternative situations? (Leave no answer blank. Enter zero if applicable.)

Elaine’s AGI is $88,000.

What is the American opportunity tax credit?

2. In 2020, Laureen is currently single. She paid $2,400 of qualified tuition and related expenses for each of her twin daughters Sheri and Meri to attend State University as freshmen ($2,400 each for a total of $4,800). Sheri and Meri qualify as Laureen’s dependents. Laureen also paid $1,750 for her son Ryan’s (also Laureen’s dependent) tuition and related expenses to attend his junior year at State University. Finally, Laureen paid $1,250 for herself to attend seminars at a community college to help her improve her job skills. (Leave no answer blank. Enter zero if applicable.)

a. What is the maximum amount of education credits Laureen can claim for these expenditures? Laureen's AGI is $45,000. If Laureen claims education credits for her three children and herself, how much credit is she allowed to claim in total? If she claims education credits for her children, how much of her children’s tuition costs that do not generate credits may she deduct as for AGI expenses?

-American opportunity tax credit? _______

Lifetime learning credit?_______

For AGI deduction?_______

3.In 2020, Laureen is currently single. She paid $2,400 of qualified tuition and related expenses for each of her twin daughters Sheri and Meri to attend State University as freshmen ($2,400 each for a total of $4,800). Sheri and Meri qualify as Laureen’s dependents. Laureen also paid $1,750 for her son Ryan’s (also Laureen’s dependent) tuition and related expenses to attend his junior year at State University. Finally, Laureen paid $1,250 for herself to attend seminars at a community college to help her improve her job skills.

b. Laureen’s AGI is $95,000. What is the maximum amount of education deductions Laureen can claim to the extent the costs don’t generate a credit?

For AGI deduction?_______

4.
In 2020, Laureen is currently single. She paid $2,400 of qualified tuition and related expenses for each of her twin daughters Sheri and Meri to attend State University as freshmen ($2,400 each for a total of $4,800). Sheri and Meri qualify as Laureen’s dependents. Laureen also paid $1,750 for her son Ryan’s (also Laureen’s dependent) tuition and related expenses to attend his junior year at State University. Finally, Laureen paid $1,250 for herself to attend seminars at a community college to help her improve her job skills. (Leave no answer blank. Enter zero if applicable.)

c. Laureen’s AGI is $45,000 and Laureen paid $12,100 (not $1,750) for Ryan to attend graduate school (i.e., his fifth year, not his junior year).

-American opportunity tax credit? _______

Lifetime learning credit?_______

5.This year Luke has calculated his gross tax liability at $2,240. Luke is entitled to a $3,060 nonrefundable personal tax credit, a $1,830 business tax credit, and a $820 refundable personal tax credit. In addition, Luke has had $2,850 of income taxes withheld from his salary. (Input the amount as a positive value.)

What is Luke’s net tax due or refund?

6.

In 2020, Zach is single with no dependents. He is not claimed as a dependent on another’s return. All of his income is from salary and he does not have any for AGI deductions.

What is his earned income credit in the following alternative scenarios? Use Exhibit 8-10. (Round your intermediate calculations to whole dollar amount. Round your final answer to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.)

d. Zach is 24 years old and his AGI is $4,100.

What is the earned income credit?_____

7.

Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start-up company.

What amount of child and dependent care credit can Julie claim in each of the following alternative scenarios? Use Exhibit 8-9

a. Julie paid $2,180 to the day care center and her AGI is $50,000

What is the child & dependent care credit?___

Milo Company buys and sells beach umbrellas. The selling price of each beach umbrella is R150 and it costs the company R70. The company is preparing budgets for the last quarter of the year and has assembled information to assist in the budget preparation. The marketing department has estimated sales as follows for the remainder of the year (in units):

Month Expected demand
September
4 000
October
3 000
November
7 000
December
5 000

The company sold 3 900 beach umbrellas during August and wrote off bad debts of R26 500. All sales are on account. The company normally collects 30% of a month’s sales before the same month ends, collects 40% in the month following the month of the sale and collects 25% two months after the sale. The remaining 5% is written off three months after the sale because it is generally not recoverable. Milo Company expects to sell 2 000 beach umbrellas during January 2020. The company estimates that its bank balance will be sitting at R80 000 at 30 September 2019.
Each beach umbrella is hard to acquire. Therefore, the company requires that the ending inventory of beach umbrellas to be equal to 20% of the following month’s estimated sales needs. Sixty percent of a month’s purchases of beach umbrellas is paid for in the month of purchase; the remainder is paid for in the following month. Milo Company decided to trade in its old and fully depreciated machine for R15 000 for a new machine that will cost the company R250 000 on 1 October 2019. The machine will be used for five years. Other expenses, including bad debts and depreciation, that are estimated to cost R120 000 per month.

REQUIRED:

a)Prepare the cash budget of Milo Company for each of the following three months: October, November and December 2019.

b)Analyse the projected cash budget of Milo Company for the last quarter of the 31 December 2019 financial year.

In January 2020, the government of Yoyo (which is part of the Commonwealth) invited bids for the construction of mobile internet towers. Royal Paints owns a subsidiary, Telall, which is experienced in phone tapping and building communications networks for countries with poor landline infrastructure. If Telall won a few of these early contracts, it would be sought after for its field experience and expertise. After careful analysis, it prepared a detailed bid for the Communications Minister of Yoyo, building in half of its usual profits margin and providing a contractual guarantee that the project would be completed in two years or less. The multi-million-dollar bid was submitted before the deadline and Telall received notification that it had reached the Yoyo government. Then, despite repeated emails, phone calls, and even faxes to the ministry, there was no news on the bids or the project from the Yoyo government.

Shawn Lamb, the management accountant (and CPA fellow) for Telall, contacted the Australian commercial attaché in Yoyo, who told him that the best chance was to go to Yoyo and try to meet with the Deputy Minister for Communication in person. Lamb prepared thoroughly for the trip, rereading the proposal and making sure that he understood the details.

At the communication attaché office in Yoyo’s capital, Lamb waited nervously for the deputy minister and his assistant. Lamb had come with a clear negotiation strategy to try to win the bid. Soon after the Deputy Minister and his staff arrived and pleasantries were exchanged, he asked a few questions about Telall and the bid and then excused himself, leaving his assistant to talk to Lamb. The Deputy Minister’s assistant indicated clearly that many other compelling bids had been made by firms from around the world. The assistant said “Mr Lamb, I guarantee that Telall’s bid will be accepted if you pay a $1 million commission. Of course, your excellent proposal does not need to be altered in any way”. It was clear to Lamb that the “commission” was in fact, a bribe.

Required:

Lamb described his experience to his friend Amada Hugs, who manages international business development for developing countries. Hugs said that her ‘own personal philosophy’ was to make such payments if they are typical in the local country’s culture. Using the provided readings as a starting point, advise Shawn Lamb on what he should do.

The following table shows the initial balance sheets of Bank A and The Federal Reserve (Fed). Suppose that the Fed then buys $10 million in bonds from Bank A.

a.) What are total assets and total liabilities for Bank A after the transaction? Write down the new balance sheet for Bank A.

b.) Excess reserves are reserves that banks hold beyond what they are required to hold to meet their reserve requirement. Assume that the reserve ratio is 10%. What are excess reserves for Bank A before and after the transaction? What are the pros and cons for Bank A of holding excess reserves?

c.) What are total assets and total liabilities for the Fed after the transaction? Write down the new balance sheet for The Fed

d.) Why would the The Fed conduct such a transaction?

Given: A 0.147 gram sample of an unknown weak monoprotic organic acid, HA, was dissolved in sufficient water to make 50.0 milliliters of solution and was titrated with a 0.0363 M NaOH solution. After the addition of 10.6 mL of base, a pH of 5.65 was recorded. The equivalence point was reached after the addition of 42.2 mL total of the 0.0363 M NaOH.

1. Calculate the number of moles of acid in the original sample.
2. Calculate the molecular weight of the acid HA.
3. Calculate the value of the ionization constant (Ka) of the acid HA
4. Calculate the pH before any base was added
5. Calculate the pH after 57.7 mL total of base has been added
6. Calculate the pH at the equivalence point.

Klean N’ Kind Corporation sells one product which has a sales price of $250 each. The company operates with variable costs for this one product of $200 per unit. The company’s monthly fixed costs are $15,000. The applicable tax rate is 20%.
Required:
Using the Contribution Margin approach perform the following:
1. Calculate the contribution margin per unit.
2. Given a desired after tax profit of $68,000, compute the before tax profit.
3. Calculate the sales units needed to achieve the after-tax profit of $68,000.
4. Compute the contribution margin ratio.
5. Using your answer to Part 4, calculate the dollar sales needed to achieve an after-tax profit of $68,000.

Popeye and Olive are partnerships with capital balances of $50,000 and $40,000, respectively. They agree to admit Pluto as a partner. After the assets of the partnership are revalued, Pluto will have 15% interest in capital and profits, for an investment of $10,000.

Assume Popeye and Olive receive 50:50 profit/loss before admitting Pluto.

The partnership uses the BONUS method. Answer the following questions:

1) Calculate the interest (in $) received by Pluto and compare with his capital contributed. Who will receive bonus?

2) Calculate the capital of Olive after admitting Pluto

3) Calculate the capital of Popeye after admitting Pluto

4) Journalize the transaction to record the asset contributed and the change in capital of the partners.

5) What are possible reasons that the partner(s) receive(s) the bonus?

Crystal Inc. is currently an all equity firm with a market capitalization of 100 million dollars. It has a total of 10 million shares. The firm announces it will borrow 20 million dollars permanently to repurchase its shares. The capital market is not perfect: The corporate tax rate is 30%, personal tax rate on interest income is 20%, and personal tax rate on equity income is 10%.

a. What is the firm’s stock price before announcing the stock repurchase?

b. What is the effective tax advantage of debt?

c. What is the firm’s value after announcing the stock repurchase?

d. What is the firm’s stock price after announcing the stock repurchase?

e. What is the market value of the firm’s equity after the stock repurchase?

Blocks A (mass 5.00 kg ) and B (mass 9.00 kg ) move on a frictionless, horizontal surface. Initially, block B is at rest and block A is moving toward it at 2.00 m/s . The blocks are equipped with ideal spring bumpers. The collision is head-on, so all motion before and after the collision is along a straight line. Let +x be the direction of the initial motion of block A.

a.) Find the maximum energy stored In the spring bumpers.

b.) Find the velocity of block A when the energy stored in the spring bumpers is maximum.

c.) Find the velocity of block B when the energy stored in the spring bumpers is maximum.

d.) Find the velocity of block A after they have moved apart.

e.) Find the velocity of B after they have moved apart.