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Fletch and Cammie Gates Are Married with Three Dependent Children

question 22

Essay

Fletch and Cammie Gates are married with three dependent children and household income of $55,140 in 2014. The Gates purchased health care insurance on their state's exchange for total premiums of $6,000. A designated silver plan for their family in their state costs $9,700. Calculate the Gates' premium tax credit.​


Definitions:

Double-Declining-Balance

A method of accelerated depreciation that doubles the straight-line depreciation rate and applies it to the reducing book value each year.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts, making the expense predictable.

Accounting Principles

Fundamental guidelines or rules that govern the financial reporting and accounting practices of companies, ensuring accuracy, consistency, and fairness in financial statements.

Prospectively

Prospectively means looking forward or considering future events, often used in accounting in terms of adopting new policies for future transactions.

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