Bob and Sally Are Married, File a Joint Tax Return

question 26

Multiple Choice

Bob and Sally are married, file a joint tax return, report AGI of $120,000, and have two children.Del is beginning her freshman year at State College during fall 2019, and Owen is beginning his senior year at Southwest University during fall 2019.Owen completed his junior year during the spring semester of 2018 (i.e., he took a "leave of absence" during the 2018-2019 school year) .Both Del and Owen are claimed as dependents on their parents' tax return. Del's qualifying tuition expenses and fees total $5,000 for the fall semester and Owen's qualifying tuition expenses were $6,100 for the fall 2019 semester.Del's room and board costs were $3,200 for the fall semester.Owen did not incur room and board costs because he lived with his aunt and uncle during the year.
Full payment is made for the tuition and related expenses for both children at the beginning of each semester.In addition to the children's college expenses, Bob also spent $3,000 on professional education seminars during the year in order to maintain his license as a practicing dentist.Bob attended the seminars during July and August 2019.Compute the available education tax credits for Bob and Sally for 2019.

• A)$3,100
• B)$5,000
• C)$5,480
• D)$5,600

Comprehend how pension funding affects an employer's balance sheet and pension expense.

Recognize the factors leading to pension liabilities and assets on the balance sheet.

Understand the role of expected return on plan assets in pension accounting.

Grasp the methods used to amortize pension gains and losses.

---

Definitions:

Quantities Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level.

Inelastic

Describes a situation where the demand or supply for a good or service is relatively unresponsive to changes in price.

Available Substitutes

Alternative products or services that consumers can use to satisfy the same needs or desires as the product or service in question.

Luxury Good

A product or service that is not essential but is highly desired and associated with wealth or high social status.