1. During 2011, Barry (who is single and has no children) earned a salary of $13,000. He is age 30. His earned income
1. During 2011, Barry (who is single and has no children) earned a salary of $13,000. He is age 30. His earned income credit for the year is:
a. $0.b. $50.c. $414.d. $464.e. None of the above.
2. During the year, Purple Corporation (a U.S. Corporation) has U.S. source income of $1,800,000 and foreign income of $600,000. The foreign-source income generates foreign income taxes of $150,000. The U.S. income tax before the foreign tax credit is $816,000. PurpIe Corporation's foreign tax credit is:
a. $112,500.b. $150,000.c. $204,000.d. $816,000.e. None of the above.
3. In 2010, Juan and Juanita incur $9,800 in legal and adoption fees directly related to the adoption of an infant son born in a nearby state. Over the next year, they incur another $4,500 of adoption expenses. The adoption becomes final in 2011. Which of the following choices properly reflects the amounts and years in which the adoption expenses credit is available:2010 2011
a. $9,800 $ 4,500b. None $13,360c. None $14,300d. $9,800 $ 4,370e. None of the above