Cal Reported the Following Itemized Deductions on His 2014 Tax

question 13

Multiple Choice

Cal reported the following itemized deductions on his 2014 tax return.His AGI for 2014 was $85,000.The mortgage interest is all qualified mortgage interest to purchase his personal residence.For AMT,compute his total itemized deductions.

• A) $0.
• B) $17,700.
• C) $25,700.
• D) $33,600.

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Definitions:

Supply Curves

Graphical representations that show the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing to produce and sell.

Progressive Tax

A tax system where the tax rate increases as the taxable amount increases, placing a higher burden on those who have higher income levels.

Proprietary Income

Income earned from owning a business or holding exclusive rights to a product or service.

Government-run Businesses

Enterprises or corporations that are owned and operated by a government in order to provide goods or services to its citizens.