Jonathan Is Married,files a Joint Return,and Has One Child

question 14

Multiple Choice

Jonathan is married,files a joint return,and has one child.During 2017,Jonathan has $85,000 of taxable income.He has $20,000 of positive AMT adjustments and $28,000 of tax preferences.Since Jonathan rents his home (pays no mortgage interest) and lives in Florida (has no state income tax) ,he does not itemize his deductions but takes the standard deduction.Calculate Jonathan's AMTI (before exclusion amount) .

• A)$137,700.
• B)$145,250.
• C)$145,700.
• D)$157,850.

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Definitions:

Pledged Property

Property that a borrower provides to a lender as security for a loan, ensuring that the lender has a claim to the property if the loan is not repaid according to the agreed terms.

Financing Agreement

A contract in which one party provides money, goods, or services to another party in exchange for eventual repayment or other financial terms.

Priority

The established order of importance or precedence among items or tasks.

Security Interest

A legal claim or lien on collateral that has been pledged, usually to obtain a loan, that provides a lender the right to repossession if the borrower defaults.