Homework Answers
An adoption credit is a federal tax credit that may be claimed by federal taxpayers who incur qualifying expenses to adopt an eligible child.
Eligible child is one who is aged below 18 years.
Expenses incurred for adoption such as adoption fee, courts fee, travelling expenses and other directly related expenditure for adoption of eligible child.
According to the IRS, the adoption tax credit for 2018 has been increased to $13,840.
So in the given case Jake and Nick has spent amount below than the allowed limit as per IRS. Accordingly entire expenditure fully allowed for deduction.
As per IRS a foreign adoption is the adoption of an eligible child who isn't yet a citizen or resident of the U.S. or its possessions before the adoption effort begins. Qualified adoption expenses paid before and during the year are allowable as a credit for the year when it becomes final.
So in the given instance child is adopted form foreign. Credit is allowed in the year of adoption becomes final.
Since adoption process became final in year 2017, entire expenditure incurred in 2016 and 2017 will be allowed for deduction in 2017 an amount of $ 7,000/.
So answer is Option d)
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LO 9-7 39. After two and one-half years of working with the orphanage and the government,...
After two and one-half years of working with the orphanage and the government, Jake and Nikki adopted a two-year-old gi...
After two and one-half years of working with the orphanage and the government, Jake and Nikki adopted a two-year-old girl from Korea. The adoption process, which became final in January 2018, incurred the following qualified adoption expenses. How much and in which year can Jake and Nikki take the adoption credit? (Assume no limitation of the credit due to AGI.) $6,825 $1,550 Year 2017 Year 2018 Multiple Choice $6,825 in 2017 $1,550 in 2018 $8.375 in 2017 $8,375 in 2018
29) Debbie files as head of household and has AGI of $36,500. During the year, she...
29) Debbie files as head of household and has AGI of $36,500. During the year, she contributed S1,000 to a 401(k). What amount of retirement savings contributions credit can Debbie take? A) $0. B) $100. C) $200. D) $1,000. 30) Which of the account contributions qualify for the retirement savings contributions credit? A) IRA. B) 401(k). C) SEP D) All of these qualify. 31) After years of working with the orphanage and the government, Walt and Kim adopted a little...
Problem 7-23 Adoption Expenses (LO 7.7) Carl and Jenny adopt a Korean orphan. The adoption takes...
Problem 7-23 Adoption Expenses (LO 7.7) Carl and Jenny adopt a Korean orphan. The adoption takes 2 years and two trips to Korea and is finalized in 2018. They pay $7,000 in 2017 and $7,500 in 2018 for qualified adoption expenses. In 2018, Carl and Jenny have AGI of $150,000. If an amount is zero, enter "0". If required, carry any division out to four decimal places and round final answers to the nearest dollar. a. What is the adoption...
LO 9-7 40. Abel and Loni adopted a boy (a U.S. citizen) during the current tax...
LO 9-7 40. Abel and Loni adopted a boy (a U.S. citizen) during the current tax year and incurred a total of $14,675 in qualified adoption expenses. Abel and Loni have modified AGI of $225,000. What is the amount of adoption credit they can take? a. $6,290. b. $7,280 c. $13,570. d. $14,675
Problem 10-39 (a) (LO. 2, 3, 4, 5, 6, 7) Stacey files as head of household with two dependents. She has AGI of $123,000...
Problem 10-39 (a) (LO. 2, 3, 4, 5, 6, 7) Stacey files as head of household with two dependents. She has AGI of $123,000 for 2019. She incurred the following expenses and losses during the year: Medical expenses before the 10%-of-AGI limitation State and local income taxes $15,575 7,200 1,400 State sales tax Real estate taxes Home mortgage interest 2,800 5,900 1,100 Credit card interest 2,400 Charitable contribution Casualty loss before 10% limitation (after $100 floor; not in a Federally...
Problem 10-39 (b) (LO. 2, 3, 4, 5, 6, 7) Antoine is single and has AGI...
Problem 10-39 (b) (LO. 2, 3, 4, 5, 6, 7) Antoine is single and has AGI of $277,000 for 2019. He incurred the following expenses and losses during the year: $44,225 Medical expenses before the 10%-of-AGI limitation State and local income taxes 2,700 State sales tax 2,900 Real estate taxes 13,400 Home mortgage interest 12,800 Credit card interest 815 11,700 Charitable contribution Casualty loss before 10% limitation (after $100 floor; not in a Federally declared disaster area) Unreimbursed employee expenses...
Problem 10-28 (LO. 2) Linda, who files as a single taxpayer, had AGI of $280,000 for...
Problem 10-28 (LO. 2) Linda, who files as a single taxpayer, had AGI of $280,000 for 2019. She incurred the following expenses and losses during the year: Medical expenses (before the 10%-of-AGI limitation) $33,000 State and local income taxes 4,800 State sales tax 1,300 Real estate taxes 6,000 Home mortgage interest 5,000 Automobile loan interest 750 Credit card interest 1,000 Charitable contributions 7,000 Casualty loss (before 10% limitation but after $100 floor; not in a Federally declared disaster area) 34,000...
(c) Calculate the productiion cost per umt anae (Round to two decimals.) (d) Which plan should...
(c) Calculate the productiion cost per umt anae (Round to two decimals.) (d) Which plan should be accepted? (Hint: Calculate the gross profit under each plan.) Nigh Corporation prepares monthly cash budgets. Relevant data from operating budgets for 2017 Prepare cash budget. P21-3A follow (LO 4) AP February January Sales Direct materials purchases Direct labour $400,000 130,000 100,000 75,000 81,000 $350,000 120,000 80,000 70,000 79,000 Manufacturing overhead Selling and administrative expenses Budgetary Planning All sales are on account. Collections are...
Problem 5-26 (LO 5-3, 5-4, 5-5, 5-7) On January 1, 2018, Sledge had common stock of $180,000 and retained earnings of $...
Problem 5-26 (LO 5-3, 5-4, 5-5, 5-7) On January 1, 2018, Sledge had common stock of $180,000 and retained earnings of $320,000. During that year, Sledge reported sales of $190,000, cost of goods sold of $100,000, and operating expenses of $46,000. On January 1, 2016, Percy, Inc., acquired 90 percent of Sledge's outstanding voting stock. At that date, $66,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $26,000 to an undervalued building (with...
Exercise 1-26A Prepare financial statements covering two accounting cycles LO 1-5, 1-6, 1-7, 1-8, 1-9, 1-10...
Exercise 1-26A Prepare financial statements covering two
accounting cycles LO 1-5, 1-6, 1-7, 1-8, 1-9, 1-10 Ortho Company
experienced the following events during its first- and second-year
operations: Year 1 Transactions: Acquired $68,000 cash from the
issue of common stock. Borrowed $36,000 cash from the National
Credit Union. Earned $59,000 of cash revenue. Incurred $43,000 of
cash expenses. Paid a $7,000 cash dividend. Paid $37,000 cash to
purchase land. Year 2 Transactions: Acquired $50,000 cash from the
issue of common...
After two and one-half years of working with the orphanage and the government, Jake and Nikki adopted a two-year-old girl from Korea. The adoption process, which became final in January 2018, incurred the following qualified adoption expenses. How much and in which year can Jake and Nikki take the adoption credit? (Assume no limitation of the credit due to AGI.) $6,825 $1,550 Year 2017 Year 2018 Multiple Choice $6,825 in 2017 $1,550 in 2018 $8.375 in 2017 $8,375 in 2018
29) Debbie files as head of household and has AGI of $36,500. During the year, she contributed S1,000 to a 401(k). What amount of retirement savings contributions credit can Debbie take? A) $0. B) $100. C) $200. D) $1,000. 30) Which of the account contributions qualify for the retirement savings contributions credit? A) IRA. B) 401(k). C) SEP D) All of these qualify. 31) After years of working with the orphanage and the government, Walt and Kim adopted a little...
LO 9-7 40. Abel and Loni adopted a boy (a U.S. citizen) during the current tax year and incurred a total of $14,675 in qualified adoption expenses. Abel and Loni have modified AGI of $225,000. What is the amount of adoption credit they can take? a. $6,290. b. $7,280 c. $13,570. d. $14,675
Problem 10-39 (a) (LO. 2, 3, 4, 5, 6, 7) Stacey files as head of household with two dependents. She has AGI of $123,000 for 2019. She incurred the following expenses and losses during the year: Medical expenses before the 10%-of-AGI limitation State and local income taxes $15,575 7,200 1,400 State sales tax Real estate taxes Home mortgage interest 2,800 5,900 1,100 Credit card interest 2,400 Charitable contribution Casualty loss before 10% limitation (after $100 floor; not in a Federally...
Problem 10-39 (b) (LO. 2, 3, 4, 5, 6, 7) Antoine is single and has AGI of $277,000 for 2019. He incurred the following expenses and losses during the year: $44,225 Medical expenses before the 10%-of-AGI limitation State and local income taxes 2,700 State sales tax 2,900 Real estate taxes 13,400 Home mortgage interest 12,800 Credit card interest 815 11,700 Charitable contribution Casualty loss before 10% limitation (after $100 floor; not in a Federally declared disaster area) Unreimbursed employee expenses...
Problem 10-28 (LO. 2) Linda, who files as a single taxpayer, had AGI of $280,000 for 2019. She incurred the following expenses and losses during the year: Medical expenses (before the 10%-of-AGI limitation) $33,000 State and local income taxes 4,800 State sales tax 1,300 Real estate taxes 6,000 Home mortgage interest 5,000 Automobile loan interest 750 Credit card interest 1,000 Charitable contributions 7,000 Casualty loss (before 10% limitation but after $100 floor; not in a Federally declared disaster area) 34,000...
(c) Calculate the productiion cost per umt anae (Round to two decimals.) (d) Which plan should be accepted? (Hint: Calculate the gross profit under each plan.) Nigh Corporation prepares monthly cash budgets. Relevant data from operating budgets for 2017 Prepare cash budget. P21-3A follow (LO 4) AP February January Sales Direct materials purchases Direct labour $400,000 130,000 100,000 75,000 81,000 $350,000 120,000 80,000 70,000 79,000 Manufacturing overhead Selling and administrative expenses Budgetary Planning All sales are on account. Collections are...
Problem 5-26 (LO 5-3, 5-4, 5-5, 5-7) On January 1, 2018, Sledge had common stock of $180,000 and retained earnings of $320,000. During that year, Sledge reported sales of $190,000, cost of goods sold of $100,000, and operating expenses of $46,000. On January 1, 2016, Percy, Inc., acquired 90 percent of Sledge's outstanding voting stock. At that date, $66,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $26,000 to an undervalued building (with...
Exercise 1-26A Prepare financial statements covering two
accounting cycles LO 1-5, 1-6, 1-7, 1-8, 1-9, 1-10 Ortho Company
experienced the following events during its first- and second-year
operations: Year 1 Transactions: Acquired $68,000 cash from the
issue of common stock. Borrowed $36,000 cash from the National
Credit Union. Earned $59,000 of cash revenue. Incurred $43,000 of
cash expenses. Paid a $7,000 cash dividend. Paid $37,000 cash to
purchase land. Year 2 Transactions: Acquired $50,000 cash from the
issue of common...
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