Prior to the Effect of the Tax Credits, Justin's Regular $\quad$

question 47

Multiple Choice

Prior to the effect of the tax credits, Justin's regular income tax liability is $200,000. and his tentative minimum tax is $195,000. Justin reports the following credits. Child tax credit $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad \$ 1,000$
Adoption expenses credit $\quad$ $\quad$ $\quad$ $\quad$ 5,000 Calculate Justin's tax liability after credits.

• A) $190,000
• B) $194,000
• C) $195,000
• D) $200,000

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Definitions:

Colluders

Parties that engage in a secret agreement, often illegal, to limit open competition by deceiving, misleading, or defrauding others of their legal rights.

Cutthroat Competitors

Businesses or individuals that engage in aggressive competition, using tactics that may include undercutting prices or other practices considered harsh or unfair.

Industry

A sector of the economy that produces goods or services, often classified into primary, secondary, and tertiary sectors.

Firms

Businesses or organizations that produce goods or provide services, typically with the objective of making a profit.