Shawn Has a Regular Tax Liability of $13,429,taxable Income of $70,000,tax

question 72

Multiple Choice

Shawn has a regular tax liability of $13,429,taxable income of $70,000,tax preferences of $25,000,and positive adjustments attributable to limitations on itemized deductions of $15,000 this year.Shawn is single and takes a $3,900 personal exemption for herself only.Shawn's alternative minimum tax for 2013 is

• A)$0.
• B)$2,691.
• C)$16,185.
• D)None of the above.

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Definitions:

Beginning Inventory

The value of all inventory held by a company at the start of an accounting period.

Ignoring Income Taxes

Refers to the accounting practice or principle where income taxes are not considered in the calculation of financial metrics or performance evaluations.

Deferred Tax Asset

A tax reduction amount that can be used to offset future taxable income, arising from temporary differences between book and tax income.

Deferred Tax Liability

This is a tax obligation due in the future for income that has already been recognized in the financial statements.