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

question 32

Essay

George and Meredith who are married,have a regular tax liability of $22,838 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 $12,000 of personal and dependency exemptions for themselves and their 20-year old dependent daughter.What is George and Meredith's alternative minimum tax for 2015?

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Definitions:

Strong Form Efficient

A hypothesis stating that all information, both public and private, is completely reflected in stock prices, meaning no investor can achieve higher returns with specific information.

Weak Form Efficient

A market efficiency theory stating that all past trading information is already reflected in stock prices, and that technical analysis cannot consistently produce excess returns.

Investment Risk

The possibility of losing some or all of an investment's value due to various factors including market volatility, economic conditions, or company performance.

Historical Return

The return that an investment has generated over a specified period of time in the past.