Caroline and Clint Are Married, Have No Dependents, and File $\begin{array}{l}\text { AMTI }&\$285,000 \\\text { Regular income tax liability }&42,066 \\\text { AMT tax preferences }&90,000\end{array}$

question 11

Essay

Caroline and Clint are married, have no dependents, and file a joint return in 2014. Use the following selected data to calculate their Federal income tax liability.
$\begin{array}{l}\text { AMTI }&\$285,000 \\\text { Regular income tax liability }&42,066 \\\text { AMT tax preferences }&90,000\end{array}$

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Definitions:

Average Collection Period

The average time it takes for a business to collect payments owed by its customers.

Credit Obligations

Financial commitments, such as loans or credit card debt, that an individual or entity is legally required to repay.

Inventory Carrying Cost

The total cost of holding inventory, including storage, insurance, taxes, depreciation, and opportunity costs, among others.

Storage Cost

Expenses associated with storing goods or commodities before they are sold or further processed.