1. George and Martha are married and file a joint tax return claiming their two children, ages 10 and 8 as dependents. Assuming their AGI is $123,450, George and Martha's child tax credit is:
a. $0,b. $750.c. $1,300.d. $2,000.e. None of the above.
2. Bob and Sally are married, file a joint tax return, have AGI of $108,000, and have two children. Del is beginning her freshman year at State College during Fall 2011, and Owen is beginning his senior year at Southwest University during Fall 2011. Owen completed his junior year during the Spring semester of 2009 (i.e., he took a "leave of absence" during the 2010-2011 school year). Both Del and Owen are claimed as dependents on their parents' tax return. Del's qualifying tuition expenses and fees total $5,000 for the Fall semester, while Owen's qualifying tuition expenses were $6,100 for the Fall 2011 semester. Del's roam and baard costs were $3,200 for the Fall semester. Owen did not incur room and board costs since he lived with his aunt and uncle during the year. Full payment is made for the tuition and related expenses for both children at the beginning of each semester. in addition to the children's college expenses, Bob also spent $3,000 on professional education seminars during the year in order to maintain his license as a practicing dentist. Bob attended the seminars during July and August 2011. Compute the available education tax credits for Bob and Sally for 2011.
a. $3,100.b. $5,000.c. $5,420.d. $5,600.e. None of the above.
3. Ashley sells real property for $280,000. The buyer pays $4,000 in property taxes that had accrued during the year while the property was still legally owned by Ashley. In addition, Ashley pays $14,000 in commissions and $3,000 in legal fees in connection with the sale. How much does Ashley realize (the amount realized) from the sale of her property?
a. $259,000.b. $263,000.c. $267,000.d. $280,000.e. None of the above