Vicki Owns and Operates a News Agency (As a Sole

question 37

Multiple Choice

Vicki owns and operates a news agency (as a sole proprietorship) . During 2017, she incurred expenses of $24,000 to increase circulation of newspapers and magazines that her agency distributes. For regular income tax purposes, she elected to expense the $24,000 in 2017. In addition, Vicki incurred $15,000 in circulation expenditures in 2018 and again elected expense treatment. What AMT adjustments will be required in 2017 and 2018 as a result of the circulation expenditures?

• A)$16,000 positive in 2017, $2,000 positive in 2018.
• B)$16,000 negative in 2017, $2,000 positive in 2018.
• C)$16,000 negative in 2017, $10,000 positive in 2018.
• D)$16,000 positive in 2017, $10,000 positive in 2018.
• E)None of the above.

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Definitions:

Concentration

The ability to direct one's attention or mental effort on a specific task or object while minimizing distractions.

Memory Testing

The process of assessing various aspects of an individual's memory, including recall, recognition, and working memory, often used to identify memory impairments or to evaluate memory performance.

Exaggerated Beliefs

Overstated or overly amplified conviction towards ideas or perspectives that may lack evidence.

Recognition Tests

Tests designed to assess an individual's ability to recognize previously presented material.