Ashby and Curtis, married professionals, have a two-year-old son, Jason. Curtis works full-time as an electrical engineer, but Ashby has not worked outside the home since Jason was born. Because Jason is getting older, Ashby thinks that he would benefit from attending nursery school several times a week, which would give her an opportunity to reinvigorate her love of painting at a nearby art studio. Ashby thinks that if she is lucky, the proceeds from the sale of her paintings will pay for the nursery school tuition. But in addition, she is planning to claim the credit for child and dependent care expenses, because the care provided Jason at the nursery school is required for her to pursue her art career. Can Ashby and Curtis claim the credit for child and dependent care expenses for the nursery school expense? Why or why not?

King Solomon is a rich farmer in Tetebia, a town in the Asou Municipal Assembly.  He owns over 100,000 hectares of farmlands. However, he fears the worst might happen and wants to do some investments to secure his future and that of his children. He is contemplating some long-term investments he could undertake to secure his future and that if his children. He is now 50 years old and he plans to retire in 10 years from active farm work. He expects to live for another 25 years after he retires –that is, until age 85. He was advised by a friend that an investment in the financial market will help him plan his retirement well. He has no idea about financial markets and how they operate.  You recently graduated from the School of Graduate Studies, University of Professional Studies, Accra and have just reported to work as an investment advisor at the brokerage firm of Cenden Ltd. King Solomon has approached your company for advice. Your boss, after a discussion with King Solomon gathered…

Three sisters, X, Y and Z, jointly inherit a small apartment building valued at $2.1 million. The building produces only a modest rental income. X and Y believe the apartment building could be more profitably utilized as a hotel. They dream of becoming hoteliers. Z is a medical doctor. She has no dreams of becoming a hotelier and is perfectly happy being a one third owner of an apartment building producing a modest rental income. X and Y press Z to venture the apartment building in a hotel business. Z, the good sister, with great reluctance eventually agrees to go along with the plan. But subject to conditions. First, she will not be involved in any way in the hotel business other than to supply capital. Second, X and Y alone shall bear any losses that might arise from the hotel business. On January 1, X, Y and Z enter into an agreement entitled ‘Partnership Agreement.’ The agreement contains, inter alia, the following provisions. X, Y and Z shall be partners in a hotel business with…

Sean owns a condo that he values at $500, 000. Sean hosts a dinner party, and invites Mo, a friend of a friend, who recently moved home to Halifax. Mo hates the apartment she just moved into. She thinks she will be a lot happier if she finds a place she can buys. Over dinner, Sean mentions he is moving to Toronto and looking to sell his condo. Mo has $1,000,000 in cash and values the condo at $600,000. The next morning, Mo understands that Colin, another friend, made an offer of $550,000. What is Sean's threat value? Question 17 options: $500,000 $1,600,000 $1,000,000 $550,000

Anthony and Amy expect to settle down and purchase a home now that Anthony has a stable job with a solid long- term growth company. They are meeting with their loan officer to determine which mortgage would best suit their needs. Amy is a stay-at-home mom raising their two school-age children. She sometimes provides child care services for her immediate family members. Neither Anthony nor Amy have served in the military, Anthony and Amy want to secure a mortgage that offers the lowest monthly payment with a fixed interest rate. Based on this information, which mortgage would be the most appropriate choice?\\n\\nA)\\nAdjustable-rate mortgage\\nB)\\n30-year conventional mortgage\\nC)\\n15-year conventional mortgage\\nD)\\nVA mortgage

Your client is Lisa, aged 63. Lisa’s husband looked after all of the couple’s finances and Lisa is now struggling to know how best to manage the finances since her husband died earlier this year. Lisa has 3 children aged 23, 17 and 15. Her husband has left a superannuation balance amounting to $600 000 consisting of a $150 000 tax-free component. Lisa is a relatively low risk investor and thinks that the security of a regular income stream sounds very appealing. 1. What advice can you provide Lisa with respect to longevity risk? Given her circumstances how is she likely to be affected by longevity risk? Given life tables, for how many years on average is Lisa likely to require an income stream? 2. What are the implications if part of the husband’s death benefit superannuation is distributed to their children? 3. Lisa is concerned that she does not have the skills to manage the investment decisions associated with the $600,000 superannuation death benefit. Does this effectively rule out…

Martha and Louis Mitchell are a dual-career couple who just had their first child. Louis, age 30, already has a group life insurance policy, but Martha's employer does not offer a life insurance benefit. A financial planner is recommending that the 27- year-old Martha buy a $250,000 whole life policy with an annual premium of $1,670 (the policy has an assumed rate of earnings of 5 percent a year). Help Martha evaluate this advice and decide on an appropriate course of action .

Ann, who is age 22, just returned to the work force last week after giving birth to twins. She has limited disposable income. She is healthy now but her family history indicates the incidence of stroke. She would like some insurance coverage for her children’s education in the event of her death. What kind of plan would you recommend to Cindy?

Carey and Pat were good friends and neighbors in an upscale neighborhood near several highly rated golf courses in Arizona. During the winter, both Carey and Pat decided to rent their homes (at a premium) to groups of golfers from the New York area who wanted to get out of the snow and enjoy sunshine and golf for a couple of weeks during the winter. While their homes were rented, Carey and Pat vacationed together in Cancun. In January 2020, Carey rented his home for 14 days and received $14,000 in rent. Pat also rented his home for the same 14 days and received $16,000 in rent. Near the end of the 14-day rental period, Pat got a call from the renters, who wanted to extend their stay for one day. Pat agreed to the extension and charged the group $2,000 for the extra day. When preparing his 2020 tax return, Pat discovered that taxpayers who rent their home for more than 14 days are required to report all of their rental income on their tax returns. Pat didn’t think it was fair that he…

Aramis and Danielle Bisset, both in their mid-20s, have been married for 4 years and have two preschool-age children. Aramis has an accounting degree and is employed as a cost accountant at an annual salary of $64,000. They're now renting a duplex but wish to buy a home in the suburbs of their rapidly developing city. They've decided they can afford a $425,000 house and hope to find one with the features they desire in a good neighborhood. The insurance costs on such a home are expected to be $1,000 per year, taxes are expected to be $3,000 per year, and annual utility bills are estimated at $1,800 - an increase of $500 over those they pay in the duplex. The Bissets are considering financing their home with a fixed-rate, 30-year, 6 percent mortgage. The lender charges 2 points on mortgages with 20 percent down and 3 points if less than 20 percent is put down (the commercial bank that the Bissets will deal with requires a minimum of 10 percent down). Other closing costs are estimated at…