Allen Green Is a Single Taxpayer with an AGI (And

question 175

Multiple Choice

Allen Green is a single taxpayer with an AGI (and modified AGI) of $210,000, which includes $170,000 of salary, $25,000 of interest income, $10,000 of dividends, and $5,000 of long-term capital gains. What is Allen's net investment income tax liability this year, rounded to the nearest whole dollar amount?

• A)$2,465
• B)$1,520
• C)$570
• D)$380

---

Definitions:

Least-squares Regression

A statistical method used to estimate the relationship between variables, typically by minimizing the squares of the differences between observed and predicted values.

Least-squares Regression

Least squares regression is a statistical technique that identifies the optimal fit line by minimizing the sum of the squared differences between the actual and forecasted values.

Variable Component

The portion of costs or expenses that varies directly with changes in business activity level.

Inspection Cost

Expenses associated with the activities undertaken to ensure that products or services meet the required standards and specifications.