Lee and Whitney Incurred Qualified Adoption Expenses in 2018 of $2,000,and

question 129

Multiple Choice

Lee and Whitney incurred qualified adoption expenses in 2018 of $2,000,and then incurred $7,000 more in 2019 when the adoption of their child became final.Their 2018 AGI was $120,000 and their 2019 AGI was $140,000.The allowable adoption credit is

• A)$7,000 in 2019.
• B)$9,000 in 2019.
• C)$13,570 in 2019.
• D)$2,000 in 2018 and $7,000 in 2019.

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Definitions:

Crossover Point

The point at which two different financial scenarios yield the same result or where an investment's cost and benefits intersect.

Cash Inflows

Money or funds received by a business during a period of time from various sources including sales, investments, and financing.

Average Accounting Return

A measure of the profitability of an investment, calculated as the average net income generated by an investment divided by its initial cost.