A parent has two children living in cities with different costs of living. The cost of...
PA 6. A parent has two children living in cities with different costs of living. The cost of living in city B is 3 times the cost of living in city A. The child in city A has an income of $2,000 and the child in city B has an income of $6,000. The parent wants to give a total of $2,000 to her two children. Her utility function is U(CA, CB)-CACB,where C A and C B are the consumptions...
Accounting 240 Income Tax Homework Problem II. Mila Kunis is a single parent living with her two daughters, whom she provides all support. she had income and expenditures for the year as followed: Homework Problem II Mila Kunis is a single parent living with her two daughters, whom she provides all support. Her daughters are age 12 and 19 years old, with the eldest attending GCC During the past year, her investments have appreciated from a cost of $20,000 to...
Joetta Hernandez is a single parent with two children and earns $55,600 a year. Her employer's group life insurance policy would pay 2.5 times her salary. She also has $74,133 saved in a 401(k) plan, $6,178 in mutual funds, and a $3,707 CD. She wants to purchase term life insurance for 15 years until her youngest child is self-supporting. She is not concerned about her outstanding mortgage, as the children would live with her sister in the event of Joetta's...
Joetta Hernandez is a single parent with two children and earns $58400 a year. Her employer's group life insurance policy would pay 2.5 times her salary. She also has $77867 saved in a 401(k) plan, $6489 in mutual funds, and a $3893 certificate of deposit. She wants to purchase term life insurance for 15 years, until her youngest child is self-supporting. She is not concerned about her outstanding mortgage, as the children would live with her sister in the event...
To give Mom a day of rest, Dad plans to take his two children, Bart and Cassie, on an outing on Sunday. Bart prefers to go to the amusement park (A), whereas Cassie prefers to go to the science museum (S). Each child gets 3 units of utility from his/her more preferred activity and only 2 units of utility from his/her less preferred activity. Dad gets 2 units of utility for either of the two activities. To choose their activity,...
Question 1: Labour Supply (25 marks) Melissa is a working mother of two living in Brazil. She has preferences over labour and leisure described by the following utility function: U = (C – 100)2_2 Melissa can earn 2 Brazilian Reals an hour, and can spend a maximum of 100 hours per week working. Melissa's wage is quite low in purchasing power. For example, a can of coke costs around 3 Brazilian Reals. a) How much time does Melissa spend working...
1. Wanda is a single parent (divorced). She has a 5-year-old daughter. She receives the following items of income during the year: • Wages - $33,000 • Child support – 9,600 • Workers compensation - $14,000 • Commissions - $8,000 • Interest - $300 • Gift from her grandfather - $10,000 What is the amount of income Wanda will need to report on her tax return for the year? Select one: a. $33,000 b. $51,300 c. $50,900 d. $41,300...
1. Cindy (age 41) is a surviving spouse and provides all the support of her two minor children who live with her (both are under age 16). She also maintains the household in which her parents live and furnished 65% of their support. Besides interest on City of Miami bonds in the amount of $5,500, Cindy's father received $2,400 from a part-time job. Cindy has a salary of $95,000, a short-term capital loss of $2,000, a cash prize of $4,000...
Bob and Alice Marshall were divorced on March 1, 2018. The following transactions are the terms of the decree: (a.) Alice will transfer title of the family home to Bob. The house has a fair market value of $80,000. (b.) Both children will live with Alice. (c.) Bob will give Alice $2,000 per month for alimony. Also, he is to give Alice $600 per month for child support. How much (in total) of these amounts will Alice include as income...
Scenario Carmen is a 40-year-old housewife. She has been living with her husband and two children in Hong Kong for 1 year. The children are studying in kindergarten and primary school. She worked as a manager in her homeland but she could not find a job after migration. She looks after the family and does all the chores at home. She does not have many friends nor relatives. She has been frustrated and upset as she finds that she cannot...