Evan and Barbara Incurred Qualified Adoption Expenses in 2014 of $6,000,and

question 76

Multiple Choice

Evan and Barbara incurred qualified adoption expenses in 2014 of $6,000,and then incurred $9,000 more in 2015 when the adoption of their child became final.Their 2014 AGI was $110,000 and their 2015 AGI was $100,000.The allowable adoption credit is

• A)$13,400 in 2015.
• B)$15,000 in 2015.
• C)$6,000 in 2014 and $7,400 in 2015.
• D)$6,000 in 2014 and $9,000 in 20154.

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Definitions:

Employment Act

A piece of legislation aimed at promoting high employment levels, economic growth, and stable prices within an economy.

Monetary Policy

The process by which the central bank, or monetary authority of a country, controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way, typically with only natural unemployment remaining.

Marginal Propensity

Measures the portion of additional income that an individual or entity spends on consuming goods rather than saving.