Suzanne, a Single Taxpayer, Has the Following Tax Information for the Current

question 714

Multiple Choice

Suzanne, a single taxpayer, has the following tax information for the current year. • Charitable contribution of real property with a FMV of $25,000 (adjusted basis $20,000) for which a $25,000 d was taken for regular tax.
• Research and experimental expenses of $40,000 deducted in full for regular tax.
Suzanne's total tax preferences and adjustments equals

• A) $45,000.
• B) $5,000.
• C) $41,000.
• D) $36,000.

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Definitions:

Term

In finance, it refers to the length of time until a loan's maturity. In general, it can mean a period or condition stipulated in an agreement.

Higher Rate

A term that generally indicates a rate (of interest, tax, etc.) that is above the normal or average level.

Capital Goods

Long-term assets that are used in the production of other goods and services, such as buildings, machinery, and equipment, which are not consumed in the production process.

Borrows

refers to the act of obtaining money, goods, or services in exchange for a promise of future repayment.