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?

5. profit maximization and shutting down in the short run suppose that the market for polos is a competitive market. the following graph shows the daily cost curves of a firm operating in this market. 0 2 4 6 8 10 12 14 16 18 20 50 45 40 35 30 25 20 15 10 5 0 price (dollars per polo) quantity (thousands of polos) mc atc avc for each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the previous graph to identify its total variable cost. assume that if the firm is indifferent between producing and shutting down, it will produce. (hint: you can select the purple points [diamond symbols] on the previous graph to see precise information on average variable cost.) price quantity total revenue fixed cost variable cost profit (dollars per polo) (polos) (dollars) (dollars) (dollars) (dollars) 12.50 135,000 27.50 135,000 45.00 135,000 if the firm shuts down, it must incur its fixed costs (fc) in the short run. in this case, the firm's fixed cost is $135,000 per day. in other words, if it shuts down, the firm would suffer losses of $135,000 per day until its fixed costs end (such as the expiration of a building lease). this firm's shutdown price—that is, the price below which it is optimal for the firm to shut down—is per polo.

Suppose that jim plans to borrow money for an education at texas a& m university. jim will need to borrow $25,000 at the end of each year for the next five years (total=$125,000). jim wishes his parents could pay for his education but they can’t. at least, he qualifies for government loans with a reduced interest rate while he is in school. he has a special arrangement with aggiebank to lend him the money at a subsidized rate of 1% over five years without having to make a payment until the end of the fifth year. however, at the end of the fifth year, jim agrees to pay off the loan by borrowing from longhorn bank. longhorn bank will lend him the money he needs at an annual interest rate of 6%. jim agrees to pay back the longhorn bank with 20 annual payments and the payments will be uniform (equal annual payments including principal and interest). (i) calculate how much money jim has to borrow at the end of 5 years to pay off the loan with aggiebank. a. $121,336 b. $127,525 c. $125,000 d. $102,020 e. none of the above

Atoy store has a new game in stock, but customers aren't buying it. which of the following types of inventory increases when customers aren't buying this game? a. work-in-process b. raw materials c. finished goods d. in-transit