Randy and Sharon Are Married and Have Two Dependent Children

question 88

Essay

Randy and Sharon are married and have two dependent children.They also fully support Sharon's mother who lives with them and has no income.Their 2013 tax and other related information is as follows:
Total salaries $160,000
Bank account interest income $3,500
Municipal bond interest income $1,500
Value of employer provided medical insurance$5,500
Value of premiums for $50,000 of group term life insurance provided by employer $500
Dividend income-from ABC stock,$2,000
Loan from Randy's parents $5,000
Gift from Randy's parents $15,000
Gain from the sale of qualified small business stock acquired in 2006 $15,000
Total itemized deductions $16,000
Compute Randy and Sharon's taxable income.(Show all calculations in good form.)

Understand different financial instruments associated with credit sales and purchases.

Grasp the economic order quantity (EOQ) model and its use in minimizing inventory costs.

Understand the effects of credit policy changes on customer payment behavior and firm finances.

Learn about the components of carrying costs and the distinction between various types of costs.

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