Reva and Josh Lewis Had Alternative Minimum Taxable Income of $350,000

question 90

Multiple Choice

Reva and Josh Lewis had alternative minimum taxable income of $350,000 in 2017 and file a joint return.For purposes of computing the alternative minimum tax,their exemption is

• A)$37,225.
• B)$47,275.
• C)$0.
• D)$84,500.

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Definitions:

Convertible Bond

A type of bond that can be converted into a predetermined amount of the issuer's equity at certain times during its life, usually at the discretion of the bondholder.

Put Option

A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an asset at a set price within a specified time.

Call Option

A financial contract giving the holder the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific period.

Option Price

The price that the option buyer pays to the option seller (writer) for the rights conveyed by the option contract.