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In 2013, Amanda and Jaxon Stuart have a daughter who is one year old. The Stuarts are full-time students and they are both 23 years old. Their only sources of income are gains from stock they held for three years before selling and wages from part-time jobs.

What is their earned income credit in the following alternative scenarios? Use Exhibit 7-10 (Round your answers to the nearest whole dollar amount.)
a. Their AGI is $15,000, consisting of $5,000 of capital gains and $10,000 of wages.

b. Their AGI is $15,000, consisting of $10,000 of lottery winnings (unearned income) and $5,000 of wages.

c. Their AGI is $25,000, consisting of $20,000 of wages and $5,000 of lottery winnings (unearned income).

d. Their AGI is $25,000, consisting of $5,000 of wages and $20,000 of lottery winnings (unearned income).

e. Their AGI is $10,000, consisting of $10,000 of lottery winnings (unearned income).

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9795891

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