Jerusha Is Married and She Files a Separate Tax Return

question 4

Essay

Jerusha is married and she files a separate tax return in 2020. She claimed the standard deduction for regular tax purposes ($12,400). She had no other adjustments. Her regular taxable income was $67,800. What is Jerusha's AMTI?

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Definitions:

Factory Rent

Refers to the cost incurred for renting a facility or space for manufacturing operations, a common type of fixed expense for manufacturers.

Direct Labor

The price of paying staff who are directly participating in the manufacturing of goods or provision of services.

Direct Materials

Basic substances used in production that can be directly integrated and precisely identified in the final product.

Factory Overhead

Indirect costs associated with manufacturing, including expenses such as rent, utilities, and maintenance that are not directly tied to the production of goods.