Husband and Wife,who Live in a Common Law State,are Eligible

question 43

Multiple Choice

Husband and wife,who live in a common law state,are eligible to file a joint return for 2017,but elect to file separately.They do not have dependents.Wife has adjusted gross income of $25,000 and has $2,200 of expenditures which qualify as itemized deductions.She is entitled to one exemption.Husband deducts itemized deductions of $11,200.What is the taxable income for the wife?

• A)$14,600
• B)$18,750
• C)$20,950
• D)None of the above.

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Definitions:

Least Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the differences between observed and predicted values.

Squared Deviations

The squares of the differences between individual observations and the mean of those observations, used in variance and standard deviation calculations.

Cost Line

A graph representation showing the relationship between the cost incurred by a company and the level of activity or volume of production.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing a more accurate representation of product costs.