Jim's form w-2 income is $32,500, and his wife, louise, received unemployment compensation of $12,800 for the year. they will file a joint return. the couple has two children: tina (17) received a form w-2 with $3,000 income, and brian (15) had interest income of $2,000. jim and louise will claim both children's exemptions on their return. additionally, they have decided to file form 8814, parent's election to report child's interest and dividends. for the purposes of the premium tax credit, what is the tax family's household income?

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i. e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?