Use the following tax structure to answer Part 1 and Part 2. Taxpayer Taxable Income Total Tax Chandler $80,000 $25,000 Monica $60,000 $25,000 Phoebe $35,000 $25,000 Joey $35,000 ? Rachel $60,000 $25,000 Ross $80,000 $25,000   Rachel and Monica agree that a tax system should be fair in the sense that it should have vertical equity. However, while Rachel thinks that vertical equity should be assessed in terms of the tax dollars paid by taxpayers, Monica thinks it should be assessed based on the tax rate applied to taxpayers. Ignoring the potential amount of tax Joey pays in the tax structure above, who is likely to think the tax structure above is fair in terms of vertical equity? (4 points)

Identifying qualifying relatives (4 points): The Striker household has 6 people in it. All the individuals are U.S. citizens and, outside of Warren and Janet, none of the other individuals are married. The following activity occurred in 2024. Two parents: Warren and Janet, who are married and file jointly. Three children: Lea (age 16), Rex (age 20), and Tim (age 22) Lea lives with Warren and Janet all year and is entirely supported by them. Rex is an undergraduate college student at George Mason and lives in the dorm while at school but at home during the summer. He is a great student and earned a merit based scholarship to cover his tuition and fees of $10,000 that requires no service on his part. His parents pay $14,000 for his dorm costs, meal plan, and medical/dental care for the year. Rex does not have any additional income of his own. Tim lives at home with his parents all year and is unemployed. He does not attend school. His parents cover all of his housing, food, and insurance costs totaling $20,000 per year. Janet’s mother: Karen (77). She lives with Warren and Janet the entire year and does not work or file a separate tax return. She is entirely supported by Warren and Janet. Determine the number of “qualifying relatives” Warren and Janet have for purposes of filing status.

Determining filing status for the taxpayer named for YEAR 2: Michael’s wife Tammy passed away in YEAR 1 (last year). They did not have any children. Michael has not remarried in YEAR 1. Taxpayer of interest: Michael. (4 points)

There are many reasons why countries may not actually enforce their laws. Which of the following are reasons discussed in class?       1. Weak enforcement can be promised as a “bargaining chip” in international economic negotiations with other countries.      2. High levels of corruption in some countries undermine the rule of law.      3. Some countries don’t have enough investigators or enforcement agencies to support their laws.      4. Many countries are not interested in joining the WTO so they don’t need to enact the types of laws membership requires.      5. In trying to attract foreign investors, countries enact legislation that does not reflect national values.  

A manager at our company got upset when a visitor asked one of her engineers a question during a tour. The manager explained to the visitor that he should have asked her, since she was in charge of the area. The manager’s tendency is:

Which of the following corporate activities would be illegal for a U.S. company under the FCPA?

Economists Heckscher and Ohlin described differences in countries’ areas of “advantage” in terms of which of the following factors?

An adult client with a history of ear infections reports a right earache accompanied by a sensation of fullness and deep throbbing pain inside the ear. The client also has a temperature of 100.6° F. The nurse questions the client about which aspect of the client’s history?

It is important to teach your patient that this specific ophthalmic medication will result in dilation and photosensitivity for a few hours after administration

You anticipate that your patient who has been experiencing recurrent episodes of vertigo, progressive unilateral nerve deafness, and tinnitus will be diagnosed with this condition.