Explain the Concepts of Emotional Support and Instrumental Support

question 132

Essay

Explain the concepts of emotional support and instrumental support. When are they important?

---

Definitions:

AMTI

Stands for Alternative Minimum Taxable Income, which is calculated by adding certain tax preference items back into adjusted gross income.

Incentive Stock Options

A type of stock option that provides tax advantages for the employee, including delayed tax implications until the stock is sold.

AMT Adjustment

Adjustments and preferences added back to or subtracted from taxable income to calculate the Alternative Minimum Tax.

Market Value

The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently, and without compulsion.