McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 15

In 2011, 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?
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 alimony (unearned income) and $5,000 of wages.c.Their AGI is $25,000, consisting of $20,000 of wages and $5,000 of alimony (unearned income).d.Their AGI is $25,000, consisting of $5,000 of wages and $20,000 of alimony (unearned income).e.Their AGI is $10,000, consisting of $10,000 of alimony (unearned income).