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Caroline and Clint Are Married,have No Dependents,and File a Joint

question 19

Essay

Caroline and Clint are married,have no dependents,and file a joint return in 2016.Use the following selected data to calculate their Federal income tax liability.

AMTI
$285,000
Regular income tax liability
42,066
AMT preferences
90,000


Definitions:

Relevant Range

The range of activity within which the assumptions about fixed and variable costs in cost-volume-profit analysis are valid.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Contribution Margin

The difference between sales revenue and variable costs, representing the amount that contributes towards covering fixed costs and generating profit.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, used in financial analysis and grading.

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