Question

Discussion Question 12-6 (Algorithmic) (LO. 4,7) Ava and her husband, Leo, file a joint return and are in the 24% Federal income tax bracket. Ava's salary is $91,800. Her employer offers a child and dependent care reimbursement plan that allows up to $5,800 of qualifying expenses to be reimbursed in exchange for a $5,800 reduction in the employee's salary. Because Ava and Leo have two minor children requiring child care that costs $6,380 each year, Avals wondering if she should sign up for the program instead of taking advantage of the credit for child and dependent care expenses. Analyze the effect of the two alternatives. Do not round intermediate computations. If required, round your final answers to the nearest dollar. Click to view Percentage Credit based on Adjusted Gross Income. a. If Ava and Leo take advantage of the plan, they expenses is til alle gross income. The In addition, Ava will save $ save income taxes because the reimbursement of child care associated with participating in the plan would be of FICA taxes due to the reduction in salary. Alternatively, if Ava does not take advantage of the plan, their child and dependent tax credit will be J. Therefore Ava and Leo's income taxes will be if they do not participate in the plan. b. Assume, Instead, that Ava and Leo's AG is $23,000 and they are in the 10% tax bracket. The associated with partidpating in the plan would be FICA taxes due to the reduction in salary in addition, Ava will saves Alternatively, if Ava does not take advantage of the plan, their child and dependent tax credit will be Leo's income taxes will be they do not participate in the plan Therefore Ava and

Answer 1

Since there are many dropdown lists in the question , i am answering those empty boxes with dollar symbol

sequence wise answers are given , please relate them

(a)

1. 5800
2. 1392
3. 6380
4. 20501