Ned Is a Head of Household with a Dependent Son

question 27

Multiple Choice

Ned is a head of household with a dependent son, Todd, who is a full-time student. This year Ned made the following expenditures related to Todd's support: $$\begin{array} { | l | r | } \hline \text { Auto insurance premiums } & \$ 1,700 \\\hline \text { Room and board at Todd's school } & 2,200 \\\hline \text { Health insurance premiums } & 600 \\\hline \text { Travel (to and from school) } & 350 \\\hline\end{array}$$ What amount can Ned include in his itemized deductions?

• A) $1,700 included in Ned's miscellaneous itemized deductions
• B) $2,050 included in Ned's miscellaneous itemized deductions
• C) $950 included in Ned's miscellaneous itemized deductions
• D) $600 included in Ned's medical expenses
• E) None of the above.

Compute the maturity value of promissory notes and understand how notes receivable and payable are accounted.

Recognize the operational use and financial reporting implications of interest-bearing and non-interest-bearing notes.

Analyze receivables to estimate uncollectible accounts.

Understand the role of current assets and how they are reported in financial statements.

---

Definitions:

Membership and Seniority-based Pay

A compensation strategy where an employee's earnings are determined by their length of service and membership in an organization, rather than performance or skills.

Skill-based Pay Plans

Compensation strategies that reward employees based on the range, depth, or level of skills and competencies they demonstrate, rather than their job title or position.

Psychological Distance

The perception of an object, idea, or situation as being removed from the immediate sensory experience, affecting cognition and decision-making.

Employability

The set of skills, knowledge, understanding, and personal attributes that make an individual more likely to choose and secure occupations in which they can be satisfied and successful.