Bradley Has Two College-Age Children, Clint, a Freshman at State

question 70

Essay

Bradley has two college-age children, Clint, a freshman at State University, and Abigail, a junior at Northwest University. Both Clint and Abigail are full-time students. Clint's expenses during the 2018 fall semester are as follows: $2,400 tuition, $250 books and course materials, and $1,600 room and board. Abigail's expenses for the 2018 calendar year are as follows: $10,200 tuition, $1,200 books and course materials, and $3,600 room and board. Tuition and the applicable room and board costs are paid at the beginning of each semester.
Bradley is married, files a joint tax return, claims both children as dependents, and reports a combined AGI with his wife Allie of $114,000 for 2018. Determine Bradley's available education tax credit for 2018.

Understand the treatment of anticipated losses and their immediate recognition under specific revenue recognition methods.

Grasp the concept of costs associated with long-term contracts and their recognition.

Understand the qualitative characteristics of useful accounting information in the context of revenue recognition.

Comprehend the realization principle and its application in revenue recognition.

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Definitions:

Epidermis

The outer layer of cells covering an organism, particularly the surface layer of skin or leaves in plants, acting as a protective barrier against environmental stress.

Lateral Roots

Secondary roots that grow out from the main root of a plant, contributing to the stability and water/nutrient absorption capabilities of the plant.

Pericycle

A layer of cells found just inside the endodermis of plant roots, important for initiating lateral root growth.

Cortex

The outer layer of an organ or structure, such as the brain’s cortex involved in many higher-level brain functions, or the cortex of plants responsible for storage and transport.