Using 2018 tax law, answer these questions about the following scenario. numbers in parentheses indicate age. each taxpayer has only the income stated. unless otherwise stated, each prospective dependent is an unmarried u. s. citizen who does not provide more than half of their own support. in no case will more than one taxpayer attempt to claim the same qualifying child as a dependent. no one other than the persons listed live in the home. jim (49) and linda (50) are married and will file a joint return. they have two children, todd (20) and traci (15), who both lived with their parents all year. todd has a part-time job, and traci is still in high school. jim and linda provide more than 50% of the support for both children. jim's wages were $26,500; linda's wages were $16,805; todd's gross income was $3,100; traci's was $0. jim and linda have no other income. jim, linda, todd, and traci had health care coverage all year through jim's employer. jim and linda are not claiming any education or retirement savings contribution credits. what is the amount of jim and linda's earned income credit?

For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the basic assumption, component, or accounting principle that is applied (if you agree) or violated (if you disagree).wagner corporation adjusted the valuation of all assets and liabilities to reflect changes in the purchasing power of the dollar. spooner oil company changed its method of accounting for oil and gas exploration costs from successful efforts to full cost. no mention of the change was included in the financial statements. the change had a material effect on spooner's financial statements. cypress manufacturing company purchased machinery having a five-year life. the cost of the machinery is being expensed over the life of the machinery. rudeen corporation purchased equipment for $180,000 at a liquidation sale of a competitor. because the equipment was worth $230,000, rudeen valued the equipment in its subsequent balance sheet at $230,000.davis bicycle company received a large order for the sale of 1,000 bicycles at $100 each. the customer paid davis the entire amount of $100,000 on march 15. however, davis did not record any revenue until april 17, the date the bicycles were delivered to the customer. gigantic corporation purchased two small calculators at a cost of $32.00. the cost of the calculators was expensed even though they had a three-year estimated useful life. esquire company provides financial statements to external users every three years.