Beula, Who Is a Head of Household and Age 40

question 83

Multiple Choice

Beula, who is a head of household and age 40, provides you with the following information from her financial records for 2014.
$\begin{array}{lr}\text { Regular income tax liability } & \$ 35,776 \\\text { AMT positive adjustments } & 33,000 \\\text { AMT preferences } & 25,000 \\\text { Taxable income } & 170,000\end{array}$

Calculate her AMTI for 2014.

• A) $0.
• B) $171,300.
• C) $195,925.
• D) $228,000.
• E) None of the above.

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Definitions:

Interest Receivable

An asset account that represents the amount of interest income that has been earned but not yet received in cash.

Interest Receivable

An accounting term for interest income that has been earned but not yet received in cash.

Debt Investments

Investments made in bonds or other debt instruments, where the investor lends money in exchange for interest payments.

Amortization

The allocation of the cost of an intangible asset to expense over its useful life in a systematic and rational manner.