Drake and Davina Are Married and File a Joint Return

question 56

Multiple Choice

Drake and Davina are married and file a joint return for 2016 with taxable income of $100,000 and tax preferences and adjustments of $51,000 for AMT purposes.Their regular tax liability is $16,533.What is the amount of their total tax liability?

• A)$17,472
• B)$39,260
• C)$34,005
• D)$16,533

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Definitions:

Current Liabilities

A company's debts or obligations that are due to be settled within one fiscal year or the operating cycle, whichever is longer.

Long-Term Liabilities

Financial obligations of a company that are due beyond one year from the balance sheet date.

Accounts Payable Turnover Ratio

A liquidity ratio that measures how many times a company pays off its suppliers over a period.

Accounts Payable

Money owed by a business to its suppliers or creditors for goods or services received.