Jack and Jill were married on December 1, 2018. Jill and her two children of a previous marriage moved into Jack’s home. Jill’s children are 14 and 16 and have no income.

            Jack and Jill have the following income for tax purposes for 2018:.

            Prior to the Marriage             Subsequent to the Marriage

            Jack                                                    $33,000                                   $3,000

            Jill                                                           9,800                                        800

            You have been asked to:

(a)  Determine the optimum personal tax credits under section 118 for both Jack and Jill for 2018.

(b)  How would your answer change in 2019 if the income levels remain the same?

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Jack and Jill are small business owners who run a hot dog stand licensedto operate outside a business shopping district. They have been so successfulthat they believe a second hot dog stand in the area also would be profitable.The capital expense to set it up would be $10,000 and they are consideringseveral options. Use a spreadsheet to evaluate these options by inserting(i) their receipts in column 1; (ii) expenses in column 2; (iii) change infinancial assets in column 3; and (iv) change in their debt in column 4. Statewhether they would be a surplus-budget unit or a deficit-budget unit undereach option.A.Their sales for the month turn out to be $12,000 and their expenses are$9,500; they borrow $10,000 for the new hot dog stand.B.Their sales for the month turn out to be $15,000 and their expenses $9,500;they sell $5,000 in stock and borrow the remaining funds needed to financethe new hot dog stand.C.Their sales for the month turn out to be $8,000 and their expenses are $9,500;they choose neither to borrow any funds nor build the second hot dog stand.D.Their sales for the month turn out to be $9,500 and their expenses also are$9,500; they use $5,000 in their bank account (with no other asset sales) tohelp finance the new hot dog stand.

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 4.Jack takes out a 15-year mortgage for $250,000. The mortgage has a fixed interest rate of 3 percent compounded monthly. a) Compute Jack’s monthly mortgage payments b) 8 years later, if Jack wants to pay off his mortgage, for how much should she do a check? Suppose he made his most recent mortgage payment earlier today.

5. The free cash flows (in millions) shown below are forecast by GS Inc. If the weighted average cost of capital is 12% and the free cash flows are expected to grow at 4.44% after the first 3 years. Year: 0 1 2 3 4 Free cash flow: -$20 -$5 $45 $47 a) What is the value of operations? (Note: this is a non-constant growth model. So you need to (1)get the value asset at end of year 3 and(2) discount the FCFs and the horizon value to time 0) b) The firm has $ 20 million of short-term investment, $30 million of longterm debt, and $40 million of preferred stock. This firm has 10 million shares of stock outstanding. What is the best estimate of the stock’s price per share?

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Cite a minimum of two scholarly sources Point of Sale SystemIdentify some advantages and disadvantages of investing in a Point of Sale (POS) system tomanage the sales and revenue processes.This is a computerized network that is always…

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Jack Smith the Real Estate Developer

Jack Smith is a real estate developer. He develops residential townhouses in the Dandenong local area. He purchases a large block of land for $2 million and plans to build 50 townhouses on the block at a considerable profit. But Dandenong Council denies his development application on the basis of a road widening proposal that will substantially reduce the size of the block of land. This road widening proposal reduces the value of the block of Jack Smith’s land to $1 million.

Jack Smith obtained a council certificate from Dandenong Council before he purchased the block of land. He reviews the information in the certificate. If the block of land had been subject to a road widening proposal then it should have been disclosed by Dandenong Council in the certificate. There is no such disclosure in the certificate. As Jack Smith didn’t bother to read the certificate before he purchased the land, he is relieved to find the council has made this 

mistake. He secretly knows that if Dandenong Council had been careful and included the road widening disclosure in the certificate, he would not have seen it and gone ahead with the land purchase anyway.

Jack Smith now wants to sue Dandenong Council in negligence for economic loss. Dandenong Council claims that negligence only applies to physical actions, not written words, and is only applicable to physical damage to people or their property, not economic loss.

Advise Jack Smith according to IRAC method

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