Cliff Is Married and Files a Joint Return

question 59

Multiple Choice

Cliff is married and files a joint return. His return shows AGI of $1,268,000 and a net tax liability of $392,259 on taxable income of $1,224,000. He has $30,000 of preference items and $21,000 of net positive adjustments (including adjustments for itemized deductions) . The $109,400 exemption begins to phase out at $1 million. What is his AMTI exemption amount?

• A) $109,400
• B) $68,750
• C) $40,650
• D) $28,825

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Definitions:

Cumulative

Referring to a total that increases by adding successive amounts.