•doreen has no special circumstances.
• sanja is paying a mortgage on a condominium. she paid $8,000 in mortgage interest and $950 in property tax during the tax year.
• ben bought new energy-efficient windows.
doreen sanja ben
gross income: 36,400 36,400 36,400
adjusted gross income: 36,400 36,400 36,400
deductions: 5,700 8,950 5,700
exemptions 3,650 3,650 3,650
taxable income 27,050 23,800 27,050
tax 3,635 3,155 3,635
tax credits 0 0 1,300
total federal income tax 3,635 3,155 2,335
1. which taxpayer received a tax credit that lowered the tax due?
2. (a) what was the value of that tax credit? (b) how did the taxes that taxpayer owed compare to the taxes owed by doreen? (c) based on these examples, which is better for a taxpayer—a deduction or a tax credit? why?
3. (a) which taxpayer itemized deductions? how can you tell? (b) what was the impact of itemizing on that taxpayer’s taxes?

Easel manufacturing budgeted fixed overhead costs of $ 1.50 per unit at an anticipated production level of 1 comma 350 units. in july easel incurred actual fixed overhead costs of $ 4 comma 700 and actually produced 1 comma 300 units. what is easel's fixed overhead budget variance for july?

Bridgeport company began operations at the beginning of 2018. the following information pertains to this company. 1. pretax financial income for 2018 is $115,000. 2. the tax rate enacted for 2018 and future years is 40%. 3. differences between the 2018 income statement and tax return are listed below: (a) warranty expense accrued for financial reporting purposes amounts to $7,500. warranty deductions per the tax return amount to $2,200. (b) gross profit on construction contracts using the percentage-of-completion method per books amounts to $94,700. gross profit on construction contracts for tax purposes amounts to $67,100. (c) depreciation of property, plant, and equipment for financial reporting purposes amounts to $61,800. depreciation of these assets amounts to $75,700 for the tax return. (d) a $3,600 fine paid for violation of pollution laws was deducted in computing pretax financial income. (e) interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500. 4. taxable income is expected for the next few years. (assume (a) is short-term in nature; assume (b) and (c) are long-term in nature.) (a) prepare the reconciliation schedule for 2017 and future years. (b) prepare the journal entry to record income tax expense for 2017. (c) prepare the income tax expense section of the income statement beginning with “income before income taxes.” (d) determine how the deferred taxes will appear on the balance sheet at the end of 2017.

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers. firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?