Julie paid a day care center to watch her two-year-old son whileshe worked as...

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Accounting

Julie paid a day care center to watch her two-year-old son whileshe worked as a computer programmer for a local start-upcompany.

What amount of child and dependent care credit can Julie claim ineach of the following alternative scenarios? Exhibit 8-9
a. Julie paid $2,400 to the day care center andher AGI is $50,000 (all salary).
b. Julie paid $6,000 to the day care center andher AGI is $50,000 (all salary).
c. Julie paid $5,000 to the day care center andher AGI is $25,000 (all salary).
d. Julie paid $2,400 to the day care center andher AGI is $14,000 (all salary).
e. Julie paid $5,000 to the day care center andher AGI is $14,000 ($2,400 salary and $11,600 unearned income).

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3.9 Ratings (523 Votes)

Description	amount	explanation
1)Dependent care expenditures	2400
2) limit on qualifying expenditures for one dependent	3000
3)Julie’s earned income	50000
4)Expenditures eligible for credit	2400	least of 1,2 or 3
5)Credit percentage rate	20%	AGI over $43000
6)Child and dependent care credit	$480	4×5

Description	amount	explanation
1)dependent care ex.	6000
2)limit on qualifying Expenditure on one dependent	3000
3)julie's earned income	50000
4)expenditure eligible for crdit	3000	least of 1,2 or 3
5)credit percentage rate	20%	AGI OVER $43000
6)child and dependent care credit	$600	4×5

Decription	amount	explanation
1)same as above	5000
2)	3000
3)	25000
4)	3000	least of 1,2 or 3
5)	30%	AGI not over $25000
6)	900	4×5

Description	amount	explanation
1) same as above	2400
2)	3000
3)	14000
4)	2400	least of 1,2 or 3
5)	35%	AGI not.over $15000
6)	$840	4×5

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Transcribed Image Text

In: AccountingJulie paid a day care center to watch her two-year-old son whileshe worked as a...Julie paid a day care center to watch her two-year-old son whileshe worked as a computer programmer for a local start-upcompany.What amount of child and dependent care credit can Julie claim ineach of the following alternative scenarios? Exhibit 8-9a. Julie paid $2,400 to the day care center andher AGI is $50,000 (all salary).b. Julie paid $6,000 to the day care center andher AGI is $50,000 (all salary).c. Julie paid $5,000 to the day care center andher AGI is $25,000 (all salary).d. Julie paid $2,400 to the day care center andher AGI is $14,000 (all salary).e. Julie paid $5,000 to the day care center andher AGI is $14,000 ($2,400 salary and $11,600 unearned income).