Deductions for AGI includes: Trade or business expenses(they have to be ordinary, necessary, reasonable, incurred in conduct of business
section 162 or 212), Reimbursed employee business expenses, Deductions from losses on sale or exchange of property ,De
Deductions for and from AGI
Single taxpayer has gross income of $45,000 and a $6,500 deduction
LESS: for AGI deduction
LESS: from AGI deduction
LESS: personal exemption
1) p2-1 Statutory Sources of the Tax Law
1) House Ways and Means Committee
2) Consideration by House of Reps
3) Senate Finance Committee to entire senate
- if House and Senate differ -> Joint Conference Committee
What includes all income from whatever source derived, unless specifically excluded under the
What are the 3 primary methods of accounting for tax purpose?
method, accrual method, and hybrid method
Cash receipts and disbursement
What are nontaxable to donee if transfer is voluntary without adequate consideration and made out of
love, affection, respect, admiration, charity, or donative intent, not obligation? Gifts
Inheritances are nontaxable to who?
Transfers by empl
Section 2. (Suggested Time: 2 Hours, 15 minutes) Answer any 3 of the following 4
7. Consider a world with T periods and J agents. There is a single perishable consumption
good. All agents have the same utility function
u c1 , c2 ,
YOUR NAME: _
YOUR R.I.s NAME:_
EXERCISE I (12 points)
Suppose that the economy of country A consists of only two industries beer brewing and pizza
baking. The table below lists the quantities produced for the period 2007 2009
Beer produced and consumed
Econ 001: Final Exam (Dr. Stein)
December 12th, 2012
This is a 120-minute examination.
Write all answers in the blue books provided. Show all work. Use diagrams
where appropriate and label all diagrams carefully.
Write your name and your Rec
Econ 172A, Fall 2008: Problem Set 1, Possible Solutions
Comments: Ten points were possible. Students who provided no evidence of using Excel received
at most six points.
1. (a) Here is a picture. (The feasible set is the gure and its interior.)
Econ 172A, Fall 2008: Problem Set 2, Possible Answers Comments: In order to get the proper sensitivity report from Excel in the Solve Parameters box select options and then in the Solve Options box check assume linear model. Note: In question 3 a change i
Warm up. (3 points each).
Choose the correct answer and write it in your blue book. Do not explain.
If you think the question is ambiguous, you may state any additional assumptions
you are making.
1. Daniel spent 5 hours selling old toys at a flea
YOUR NAME: _
YOUR TAs NAME:_
the answer sheet for the MC provided on the last page of the exam.
1) Alice says that the present value of $700 to be received one year from today if the interest rate is 6 percent is less than
the present value of $700 to be
Warm up. (4 points each).
State whether each statement is True or False.
Briefly explain your answer.
Do not write a novel: a quick graph or a sentence or two will do!
1. The concept of Opportunity Cost helps us understand why applications to
YOUR NAME: _
YOUR TAs NAME:_
Econ 002 INTRO MACRO Prof. Luca Bossi February 13, 2012
My signature below certifies that I have complied with the University of Pennsylvania's Code of Academic
Integrity in completing this
-Paid by BOTH employee and employer
-Spouse employed by another spouse IS subject to FICA
-Children under 18 employed by parents business-EXEMPT
-Additional .9% tax is imposed on earned income above $200,000(single) or
-Taxes imposed at the manufacturers, wholesalers, or retailers level cover wide
range of transfers
Federal excise taxes include:
1) Manufacturers excise taxes on trucks, trailers, firearms, sporting equipment,
coal and gas g
Self Employed- Deduct. For AGI.sch C To classify employee (vs. self employed): Subject to the will and control of the employer with respect to what shall be done and how it
shall be done. Another furnishes tools or the place of work. Income based on time
4 Tests for Qualifying Child
1. Support Test: Child must not be self-supporting.Meaning: Child must not provide over 1/2
of his or her own support.If the child is a full-time student, scholarships are not considered to be
2. Relationship Test: In
Cash Basis-income is actually or constructively received in cash or cash equivalent, regardless of whether the income was earned in that year. When
using this method you dont have to pay income taxes on uncollected accounts receivable. Als
Managers carry out three major activities planning, directing and motivating,
Planning involves selecting a course of action and specifying how the action will
be implemented. An important part of planning is to identify alterna
There are seven key differences between managerial accounting and financial
1. Financial accounting reports are prepared for external parties, whereas,
managerial accounting reports are prepared for internal users.
2. Financial accou
A manufacturing company incurs many other costs in addition to manufacturing
costs. For financial reporting purposes, most of these other costs are typically
classified as selling costs and administrative costs. These costs are also called
Merchandising companies purchase finished goods from suppliers for resale to
customers. Manufacturing companies purchase raw materials from suppliers and
produce and sell finished goods to customers.
consider the similarities and differences on
The computation of Cost of Goods Sold relies on this basic equation for inventory
accounts: beginning inventory balance plus additions to inventory equals ending
inventory balance plus withdrawals from inventory. The logic underlying this
You can see that the cost of goods manufactured is added to the beginning
finished goods inventory to get the cost of goods available for sale. The ending
finished goods inventory is subtracted to arrive at the cost of goods sold.
Managers often need to be able to predict how costs will change in response to
changes in activity. The activity might be the output of goods or services or it
might be some measure of activity, internal to the company, such as the number