Janet and Pat McGuire Are Married and File a 1040

question 20

Multiple Choice

Janet and Pat McGuire are married and file a 1040 jointly. Janet earns $28,000 and Pat earns $18,500 for the year. They have two children. They have earned interest income of $240. Janet contributed $2,000 to her IRA and Pat contributed $1,500 to his. Their itemized deductions are $3,750 in medical and dental expenses, $4,500 in real estate taxes, $7,480 in home mortgage interest, $1,000 in student loan interest, $1,100 in personal property taxes, and $675 in charitable contributions. Together, they had $3,200 withheld for taxes. Use a tax table. Which is true about how much Janet and Pat either owe in taxes or have due as a refund?

• A) owe $1,802
• B) refund of $1,802
• C) owe $1,521
• D) refund of $1,521

Determine changes in depreciation expense accounting due to revisions in asset life expectancy and residual values.

Understand the concept of depreciation as a mechanism for asset cost allocation over its useful life.

Calculate and journalize asset disposal transactions, including gains or losses.

Understand and apply the concept of depletion for natural resources.

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Definitions:

Consumers

People or collectives who buy products and services for their own consumption.

Producers

Individuals or organizations that create goods or services to satisfy market needs.

Embargo

A government order restricting or prohibiting trade and commerce with a specific country or the exchange of specific goods.

Prisoner's Dilemma

A concept in game theory where two individuals acting in their own self-interest do not produce the optimal outcome for either party.