Use the following information from separate companies a through f:

Compute times interest earned.

Barbara borrows $3000. She agrees to make monthly interest payments on the loan and will build up a sinking fund with monthly deposits to repay the principal with a single payment 19 months from now. If the interest being charged on the loan is j12 = 8.5% and the interest being earned on the sinking fund is j12= 5.4%, what is the monthly cost of the debt for Barbara?

An unmarried couple split with a 50/50 custody agreement stating that every other year the parent may claim the one child as a dependent. One parent makes 80K a year and the other makes 23K a year. Does a custody agreement prevent the lower earner from claiming child tax credit or earned income credit? Explain your answer.

Consider checking the effectiveness of a weight loss program. One approach is to take two random samples, one from those who did not participate in the program, and another from those who participated, and compare the difference. Another is to take a random sample from people who plan to participate, and compare their weights before and after participation. Which of these would be more helpful? Why?

An individual ingests a substance that acts as an agonist to muscarinic receptors. What effect do you predict it will have on the individual?

The domicile is the method of taxing individuals. Every individual has to pay state taxes based on the residency, even if individual earn money in another state or country. The article shows three different cases, where taxpayers did not understand the rules of the domicile. The individual should consult with licensed and experienced accountant how to terminate place of the old domicile and  how  to get the new  place of domicile. It would help the individual to avoid problems and penalties with a state governments in the future.

QUESTION: DO YOU AGREE WITH THE ABOVE STATEMENT? EXPLAIN

An individual likes to consume 2 goods X and Y . The utility function for this individual is U = X+0.5Y . What

is the marginal utility of X and Y ?

The individual has an income of $90. The price of X is $10 and the price of Y is $5. What is the optimal consumption

bundle of this individual? Graph the individuals optimal bundle with the budget line and indierence curve. (answer: Infinitely many solutions).

Do the same question but change utility function to U=X+Y. (Answers must be X=0, Y=18)

Sunshine Company is a calendar year accrual-basis taxpayer and is in its first year of operations. Sunshine Company had the following income, expense, and loss items for the current year:

Furthermore, Sunshine’s liabilities (all recourse) increased from $0 on 1/1 to $300,000 on 12/31 of the current year.

1. Assume that Sunshine Company is a c corporation. Alvin contributed $60,000 to purchase 60% of the stock while his wife’s best friend, Ann, contributed $40,000 to purchase the remaining 40% of the stock when the corporation was formed this year. Alvin received a $2,400 per month salary ($28,800 in total). Ann doesn’t work for the company so she received no salary. The company distributed some profits at the end of the year by paying out a $55,000 dividend. (11 points)
   1. Calculate Sunshine Corporation’s taxable income and income tax liability to be reported on Form 1120.
   2. What amount and type of income must Alvin report on his individual Form 1040 tax return?
   3. What amount of Alvin’s income will be subject to self-employment tax?
   4. What is Alvin’s basis in his Sunshine stock at the end of this year?

Note that you do not need to complete Form 1120 but this form and related schedules will be a useful guide in completing this portion of the assignment