George and Meredith Who Are Married,have a Regular Tax Liability

question 64

Essay

George and Meredith who are married,have a regular tax liability of $22,783 based on regular taxable income of $125,000.This year they generated tax preferences of $25,000,and positive adjustments attributable to limitations on itemized deductions of $18,700.In determining regular taxable income,they had claimed $12,150 of personal and dependency exemptions for themselves and their 20-year old dependent daughter.What is George and Meredith's alternative minimum tax for 2016?

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Definitions:

Inverse Demand Function

Represents the relationship between the quantity demanded of a good and its price, formulated to express price as a function of quantity.

Consumer's Surplus

The gap between the total sum consumers are ready and able to spend on a good or service and what they actually spend.

Used Cars

Pre-owned vehicles that have been previously registered and used by one or more owners.

Constant Marginal Cost

A situation where the marginal cost of producing one additional unit of output is the same, regardless of the level of production.