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:

Marginal Revenue Product

The additional income yielded by deploying one more unit of a component, for instance, labor or capital.

Economic Resource

An asset that is used in the production of goods and services, including natural, human, and capital resources.

Product Price

The monetary value assigned to a good or service for sale.

Total Output

The aggregate amount of goods and services produced by an economy over a specific time period.