Bob and Sally Are Married,file a Joint Tax Return,have AGI

question 60

Multiple Choice

Bob and Sally are married,file a joint tax return,have AGI of $108,000,and have two children.Del is beginning her freshman year at State College during Fall 2010,and Owen is beginning his senior year at Southwest University during Fall 2010.Owen completed his junior year during the Spring semester of 2009 (i.e. ,he took a "leave of absence" during the 2009-2010 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,while Owen's qualifying tuition expenses were $6,100 for the Fall 2010 semester.Del's room and board costs were $3,200 for the Fall semester.Owen did not incur room and board costs since 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 2010.Compute the available education tax credits for Bob and Sally for 2010.

• A)$3,100.
• B)$5,000.
• C)$5,360.
• D)$5,600.
• E)None of the above.

Understand the concept of accounting and economic profits and their differences.

Comprehend the effects and effectiveness of usury laws on the interest rates and loan markets.

Analyze the role of economic profit in competitive equity, innovation, and risk management.

Interpret data from tables related to market equilibrium, interest rates, and loanable funds.

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Definitions:

Standard Costs

Predetermined costs for materials, labor, and overhead used as benchmarks for measuring performance.

Kilos

A unit of measurement equivalent to one thousand grams, used commonly across the world to denote mass in the metric system.

Raw Material

Basic substances in their natural, modified, or semi-processed states used as an input for a manufacturing process.

Standard Costs

Predetermined costs for materials, labor, and overhead that are used as benchmarks for measuring actual performance and cost control.