Evan and Barbara Incurred Qualified Adoption Expenses in 2013 of $6,000,and

question 75

Multiple Choice

Evan and Barbara incurred qualified adoption expenses in 2013 of $6,000,and then incurred $7,500 more in 2014 when the adoption of their child became final.Their 2013 AGI was $110,000 and their 2014 AGI was $100,000.The allowable adoption credit is

• A)$13,190 in 2014.
• B)$13,500 in 2014.
• C)$6,000 in 2013 and $7,190 in 2014.
• D)$6,000 in 2013 and $7,500 in 2014.

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Definitions:

Income Taxes

Taxes on an individual's or corporation's income imposed by the government.

Modified Accelerated Cost Recovery System (MACRS)

The system of accelerated depreciation allowed for federal tax computations.

5-Year Asset

An asset that is expected to provide economic value or service for a period of five years.

Computers

Electronic devices designed to process, store, and communicate information, playing a crucial role in both personal and professional settings.