L and M Are Married and File a Joint Return

question 39

Multiple Choice

L and M are married and file a joint return.Having no children of their own, they adopted a three year old "special needs" child.L and M incurred $10,000 in qualified adoption expenses such as adoption fees, attorney fees and court costs.The $10,000 was furnished to M under an adoption assistance program maintained by his employer.Assuming L and M's AGI for the current year amounts to $105,000 before considering adoption assistance, how much of the $10,000 payment must the couple include in their gross income?

• A)$0
• B)$10,000
• C)$6,000
• D)$8,500

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Definitions:

Visual Stimulus

Any object or event in the environment that draws visual attention or elicits a visual response.

Memory

The cognitive process of retaining and recalling information or experiences.

Habituation

the process by which an individual becomes accustomed to a stimulus after repeated exposure, leading to a decrease in their response.

Pay Less Attention

Act of giving reduced focus or importance to something, potentially leading to overlooking or ignoring it.