Question 1: Austin v. New Hampshire (P&I Clause) New Hampshire, which levies no personal income taxes, adopted an income tax that effectively applied only to nonresidents. The Commuters Income Tax was imposed on the income of nonresidents earned in New Hampshire. The state also levied a tax on residents income earned outside the state, but immediately nullified its effect through another provision that exempted such income from tax. Does the New Hampshire Commuters Income Tax violate the Privileges and Immunities Clause? Why or why not?

Question 2: Michelin Tire Corp v. Wages (I&E Clause) Michelin stored tires and tubes imported from France and Nova Scotia in a warehouse in Georgia while they were awaiting distribution to franchised dealers throughout the Southeast. The county assessed ad valorem property taxes against the tires and tubes, and the taxpayer challenged the assessment under the Import-Export Clause. What was the ruling of the Court and why?

Smith Family

• Single male
• Paid $900 in alimony last year
• No kids
• Earned $37,500 last year from FT job
• Earned $3,000 from PT job
• Rents an apartment for $600/mth
• Spent $500 on moving expenses for a new job
• Paid $2,400 in federal income taxes through his paychecks
• Paid $700 in interest on a student loan
• Gave $500 to a local for profit soccer team for new uniforms
• Bought a new car with a $2,000 down payment
• Contributed $3,000 to a Roth IRA last year

1. What is the Smith family Gross Income?
2. What is the Smith Family AGI?
3. What would the standard deduction be for the Smith family?
4. What is the total of itemized deductions the Smith family can use?
5. How much of the soccer donation can the Smith family claim?
6. What is the Taxable income for the Smith family?
7. How much will the Smiths owe/get in refund for their tax return?
8. What is the average tax rate for the Smith family?

Transaction Reporting in Fund and Government-Wide Statements

Consider the following transactions of Daley County:

1. General property taxes of $4,500,000 are levied.

2. Grants of $850,000 are received from the state to finance public safety programs.

3. Investment income of $55,000 is earned and received in cash on investments of a debt service fund.

4. Investment income of $85,000 is earned and received in cash on investments made using money received from a generous citizen. The money is held in trust to finance acquisitions of the public art gallery, outlays are limited to earnings and the original contribution cannot be spent.

5. User fees of $45,000 are received from operations of the community pool.

6. Depreciation on public safety equipment is $35,000 for the year.

7. Investment income of $25,000 is earned and received in cash on general fund investments of excess cash.

8. The motor pool submits $32,000 in charges for vehicle use to other units in the government.

9. Current year accrued interest on general long-term debt is $30,000, and is not due for several years.

Required

For each transaction:

• Indicate the fund affected and prepare the journal entry required in the fund financial statements.  
• Indicate whether the transaction is considered a governmental or business-type activity in the government-wide financial statements and prepare the journal entry required in the government-wide financial statements.

Note:  If an item is not reported in a fund statement and/or in the government-wide statements, select Not applicable and No entry.  

1. General property taxes of $4,500,000 are levied.

Fund financial statements:

Which fund is the transaction recorded in?

AnswerDebt service fundEnterprise fundGeneral fundInternal service fundPermanent fundSpecial revenue fundNot applicable

Molly’s Greenhouse supplies bedding plants and other gardening products to a variety of stores across Alberta and also has a local greenhouse open to the public. Molly’s uses a perpetual inventory system and the earnings approach for revenue recognition. Transactions for the business are shown below:

Prepare journal entries to record the above transactions using the perpetual method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Prepare journal entries to record the above transactions using the periodic method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

The following information is from 2019 statement of stockholders' equity for Katy Inc.

Dynegy has 420 million shares of common stock authorized. Assume the following transactions occurred during the 2019.

Required:

1. TANF is the current iteration of welfare designed to aid poor families with children.
   1. Graph the TANF budget constraint and graph a possible optimal hours choice for an individual that has a preference for leisure.

2. When in the program, what are the effects on work incentives from income and substitution effects?.

(Please justify your answer) A rare mutation generates a fourth blood group, C, where they are missing one additional carbohydrate from the glycoprotein, i.e. type I with one more sugar missing. What ABO blood groups could donate to this individual?