Lavonne Has a Regular Tax Liability of $13,294 on Taxable

question 93

Multiple Choice

Lavonne has a regular tax liability of $13,294 on taxable income of $70,000.She also has tax preferences of $25,000 and positive adjustments attributable to limitations on itemized deductions of $15,000.Lavonne is single and takes a $4,000 personal exemption for herself only.Lavonne's alternative minimum tax for 2015 is

• A)$0.
• B)$2,410.
• C)$15,704.
• D)none of the above.

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Definitions:

Cash Receipts

The collection of cash, typically by a business from its customers, for goods or services provided.

Credit Sales

Credit sales are transactions where the customer purchases goods or services with an agreement to pay at a later date.

Cash Budget

A cash budget is a financial plan that estimates cash inflows and outflows over a specific period of time.

Housekeeping Budget

A financial plan allocating funds to maintain cleanliness, equipment, and supplies for housekeeping operations within an organization.