Early in its fiscal year ending december 31, 2018, san antonio outfitters finalized plans to expand operations. the first stage was completed on march 28 with the purchase of a tract of land on the outskirts of the city. the land and existing building were purchased for $920,000. san antonio paid $260,000 and signed a noninterest-bearing note requiring the company to pay the remaining $660,000 on march 28, 2020. an interest rate of 6% properly reflects the time value of money for this type of loan agreement. title search, insurance, and other closing costs totaling $26,000 were paid at closing.

Bill is 31 years old, married, and lived with his spouse michelle from january 2018 to september 2018. bill paid all the cost of keeping up his home. he indicated that he is not legally separated and he and michelle agreed they will not a file a joint return. bill has an 8-year-old son, daniel, who qualifies as bill's dependent. bill worked as a clerk and his wages are $20,000 for 2018. his income tax before credits is $500. in 2018, he took a computer class at the local university to improve his job skills. bill has a receipt showing he paid $1,200 for tuition. he paid for all his educational expenses and did not receive any assistance or reimbursement. bill does not have enough deductions to itemize. bill, michelle, and daniel are u.s. citizens with valid social security numbers. 8. bill does not qualify to claim which of the following: a. head of household b. education benefit c. earned income credit d. all of the above