Tom and Anita Are Married,file a Joint Return with an AGI

question 34

Essay

Tom and Anita are married,file a joint return with an AGI of $165,000,and have one dependent child,Tim,who is a first-time freshman in college.The following expenses are incurred and paid in 2014:
What is the maximum education credit allowed to Tom and Anita?

Recognize how interests in joint ventures and joint operations are accounted for and disclosed.

Understand the entitlement of venturers to share in profits and the treatment of losses.

Identify financial statement presentation and disclosure requirements for joint arrangements.

Analyze the financial impact and accounting treatment of venturer contributions and investments in joint arrangements.

---

Definitions:

Equal End-of-Year

A term referring to payments or allocations that are made uniformly at the end of each year.

Effective Annual Rate

The effective annual rate (EAR) is the interest rate on a financial product restated from nominal terms into an annualized rate accounting for compounding over a period.

Loan Contract

A legally binding agreement between a borrower and a lender that outlines the terms and conditions of a loan.

Interest Payments

Regular payments made to lenders or bondholders as compensation for the use of borrowed funds, usually calculated as a percentage of the principal.