MrAnd MrsBrown Adopted a Child in 2011

question 8

Multiple Choice

Mr.and Mrs.Brown adopted a child in 2011.During 2011,Mrs.Brown's employer pays $3,000 of her adoption expenses.The Browns also pay $12,300 out of their pocket during 2011.Their AGI is $100,000.Which of the following are accurate?

• A)The $3,000 of adoption expenses will not be included as wages on Mrs.Brown's W-2 and the Browns will also be able to claim a $12,300 adoption credit on their 2011 tax return.
• B)The Browns are entitled only to a $12,300 adoption credit.The $3,000 of adoption expenses will be reflected on Mrs.Brown's W-2 as wages.
• C)The Browns may choose between excluding the $3,000 from Mrs.Brown's income and claiming an adoption credit.
• D)The Browns will receive a $3,000 exclusion from income and a credit of $10,360.

---

Definitions:

Heteroscedasticity

A condition in regression analysis where the variance of the residuals or errors is not constant across all levels of an independent variable, violating one of the key assumptions of linear regression.

Errors

Differences between observed values and the values predicted by a model.

Standardized Residuals

Residuals that have been adjusted to have a mean of zero and a standard deviation of one, useful for comparing residuals across different datasets.

Marc Anthony

A popular American singer and actor known for his contributions to salsa and Latin pop music.