In 2018, Cassidy, a single taxpayer with no dependents, was severely hurt in a farm accident. Cassidy is 38 years old. The accident left Cassidy's legs 85% paralyzed. After incurring $14,000 of medical expenses at the hospital, the doctor recommended that Cassidy install a pool at her home for therapy. The pool cost $25,000 to install and increased the value of her home by $22,000. She spent $930 maintaining the pool in 2018 and $1,060 in 2019. Cassidy also purchased a wheelchair on December 28, 2018, for $2,300, which she charged to her credit card. She paid her credit card bill on January 6, 2019. She also purchased a hospital bed for $3,800 but did not pay for the bed until 2019. Cassidy paid her physical therapist $4,000 for services performed in 2019. Cassidy paid $1,200 in medical insurance premiums on an after-tax basis in both 2018 and 2019. In 2019, the insurance company reimbursed Cassidy $9,000 for her hospital stay in 2018. Her AGI for 2018 and 2019 is $38,000 and $43,000, respectively, not considering any of the above items. Cassidy has no other itemized deductions in either year.

a. What is Cassidy's taxable income for 2018?
b. What is Cassidy's medical expense deduction for 2019? How does she treat the reimbursement?

The following cost data relate to the manufacturing activities of chang company during the just completed year: manufacturing overhead costs incurred: indirect materials $ 15,800 indirect labor 138,000 property taxes, factory 8,800 utilities, factory 78,000 depreciation, factory 150,600 insurance, factory 10,800 total actual manufacturing overhead costs incurred $ 402,000 other costs incurred: purchases of raw materials (both direct and indirect) $ 408,000 direct labor cost $ 68,000 inventories: raw materials, beginning $ 20,800 raw materials, ending $ 30,800 work in process, beginning $ 40,800 work in process, ending $ 70,800 the company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. a total of 20,500 machine-hours were used during the year. required: 1. compute the amount of underapplied or overapplied overhead cost for the year. 2. prepare a schedule of cost of goods manufactured for the year.

Sweeten company had no jobs in progress at the beginning of march and no beginning inventories. the company has two manufacturing departments--molding and fabrication. it started, completed, and sold only two jobs during march—job p and job q. the following additional information is available for the company as a whole and for jobs p and q (all data and questions relate to the month of march): molding fabrication total estimated total machine-hours used 2,500 1,500 4,000 estimated total fixed manufacturing overhead $ 10,000 $ 15,000 $ 25,000 estimated variable manufacturing overhead per machine-hour $ 1.40 $ 2.20 job p job q direct materials $ 13,000 $ 8,000 direct labor cost $ 21,000 $ 7,500 actual machine-hours used: molding 1,700 800 fabrication 600 900 total 2,300 1,700 sweeten company had no underapplied or overapplied manufacturing overhead costs during the month. required: for questions 1-8, assume that sweeten company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. for questions 9-15, assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. 1. what was the company’s plantwide predetermined overhead rate? (round your answer to 2 decimal places.) next

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?