Vincent and Maria,whose Modified AGI Is $164,000,adopted a Little Girl

question 114

Multiple Choice

Vincent and Maria,whose modified AGI is $164,000,adopted a little girl from Mexico which was finalized in 2014.They incurred a total of $16,000 in qualified adoption expenses.What is the amount of adoption credit they can claim in 2014?

• A) $0.
• B) $13,190.
• C) $16,000.
• D) $18,000.

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Definitions:

Merchandising Company

A business entity that purchases goods in a finished condition and sells them without further processing.

Operating Expenses

The costs associated with running a business's core activities on a day-to-day basis, excluding the cost of goods sold.

Non-Operating Items

Income or expenses that are not related to a company's core business operations, often including gains or losses from investment or interest expenses.

Loss From Operations

A financial situation where a company's operating expenses exceed its gross profits, indicating inefficiency in business operations.