Alistair and Ling Parks are married and file jointly. Their MAGI for this year is $72,000. They have two dependent children: Hana, who is completing her second year of college and is enrolled full-time in a degree program with no felony drug conviction, and Jiro, who is a licensed electrician taking a continuing education course to improve his job skills at a local community college. Alistair and Ling paid $4,500 in qualified tuition for Hana and $3,000 for Jiro’s course. What is the maximum combined education credit the Parks may claim for this year?

The following five questions come from Josh Sears’s lesson, “Lesson 19: Christ’s Postmortal Ministry among the Lehites.”

Caesar is starting a new business with his best friend, Iris. They would like to have limited liability, but they would prefer flow-through taxation because they expect to have losses in the first few years. They are not concerned about incurring self-employment taxes. Which of the following entities would best suit Caesar and Iris’s needs?

Which of the following statements are accurate regarding AMT?

The following five questions come from John Hilton III’s lesson, “Lesson 17: The Savior’s Trial before Pilate, Crucifixion, and Burial.”

The following five questions come from John Hilton III’s lesson, “Lesson 1: Jesus Christ and His Everlasting Gospel.”

Don was diagnosed with a terminal illness and certified by a physician as having a life expectancy of less than 24 months. Six months after certification, Don sold a life insurance policy with a $750,000 face value to a viatical settlement provider for $510,000. Don had paid $80,000 in cumulative premiums. How much of the $510,000 in proceeds must Don include in gross income?

Yasmeen was widowed when Alfred died earlier this year. Yasmeen met Willem in the spousal loss support group. In a romance novel type whirlwind romance, Yasmeen and Willem were married in November of the same year. What filing status will be used for Yasmeen, Alfred, and Willem for the current year? 

Reilly owns and operates an accounting practice as a sole proprietorship. For tax reporting, Reilly uses the accrual method of accounting. Last year, Reilly prepared a tax return for a client and billed the client $600. The client did not pay and has recently disappeared. The reminder notices that Reilly’s secretary had sent to the client have been returned with no forwarding address. How should this bad debt be treated for income tax purposes?

During the current year, Hazel (a taxpayer), collected $600 interest on U.S. Treasury bills, $900 interest on Escambia County school bonds, and $200 from a state income tax refund (she itemized her deductions last year and deducted a total of $8,000 for state and local taxes). Hazel also received $400 in dividends from a U.S. company’s common stock. Her gross income from the above is: