Felix and isabella franklin have been married since 2016. felix is a u. s. citizen with a valid social security number. isabella is a resident alien with an individual taxpayer identification number (itin). they elect to file married filing jointly. felix worked in 2019 and earned wages of $40,000. isabella worked part-time and earned $10,000. they have two children: rose, who is 3 years old, and iris, who is 8 years old. both children were supported by their parents all year. rose is a u. s. citizen and has a valid social security number. iris is a resident alien and has an itin.
felix and isabella paid $5,000 in daycare for rose and iris. the statement from the daycare provider includes the provider's name, address, valid employer identification number, and the amount paid for rose and iris's care. felix, isabella, rose, and iris lived together in the u. s. all year.

are the franklins eligible to claim the earned income credit?

a. yes, because everyone has a taxpayer identification number.
b. yes, because felix has a social security number.
c. no, because isabella has an itin.
d. no, because their income is too high.

In each of the cases below, assume division x has a product that can be sold either to outside customers or to division y of the same company for use in its production process. the managers of the divisions are evaluated based on their divisional profits. case a b division x: capacity in units 200,000 200,000 number of units being sold to outside customers 200,000 160,000 selling price per unit to outside customers $ 90 $ 75 variable costs per unit $ 70 $ 60 fixed costs per unit (based on capacity) $ 13 $ 8 division y: number of units needed for production 40,000 40,000 purchase price per unit now being paid to an outside supplier $ 86 $ 74 required: 1. refer to the data in case a above. assume in this case that $3 per unit in variable selling costs can be avoided on intracompany sales. a. what is the lowest acceptable transfer price from the perspective of the selling division? b. what is the highest acceptable transfer price from the perspective of the buying division? c. what is the range of acceptable transfer prices (if any) between the two divisions? if the managers are free to negotiate and make decisions on their own, will a transfer probably take place?