Chad and Jaqueline Are Married and Have AGI of $150,000

question 57

Multiple Choice

Chad and Jaqueline are married and have AGI of $150,000.In 2017 they adopted a child,while taking advantage of their employer's written adoption assistance program.The adoption cost $9,500,all of which was paid by the employer in accordance with the adoption plan.How much of the employer-paid adoption costs may be excluded from their income?

• A)$0
• B)$5,000
• C)$5,250
• D)$9,500

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Definitions:

Labor Efficiency Variance

A metric used to measure the difference between the actual labor hours worked and the standard labor hours allowed for the production achieved.

Labor Standards

Predetermined measures of the amount of labor time necessary for the completion of a task or project.

Variable Overhead

Costs that vary with the level of production or sales, such as utilities or commissions, but not directly tied to specific units.

Direct Labor-Hours

The total hours of labor directly involved in producing goods, used as a base to allocate labor costs to products.