Lee and Whitney Incurred Qualified Adoption Expenses in 2016 of $2,000,and

question 20

Multiple Choice

Lee and Whitney incurred qualified adoption expenses in 2016 of $2,000,and then incurred $7,000 more in 2017 when the adoption of their child became final.Their 2016 AGI was $120,000 and their 2017 AGI was $140,000.The allowable adoption credit is

• A)$ 7,000 in 2017.
• B)$ 9,000 in 2017.
• C)$13,570 in 2017.
• D)$2,000 in 2016 and $7,000 in 2017.

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Definitions:

Maximum Tax

An imposed upper limit on the amount of taxes that can be levied on an individual or entity by the government.

Buyers Pay

Refers to situations where the responsibility for covering the cost of a transaction, tax, or fee lies with the buyer rather than the seller.

Sellers Receive

The revenue or payment that sellers get in exchange for providing goods or services in the market.

Deadweight Loss

A loss of economic efficiency that can occur when the optimal quantity of a good or service is not produced or traded.