Lee and Whitney Incurred Qualified Adoption Expenses in 2012 of $2,000,and

question 59

Multiple Choice

Lee and Whitney incurred qualified adoption expenses in 2012 of $2,000,and then incurred $7,000 more in 2013 when the adoption of their special needs child became final.Their 2012 AGI was $120,000 and their 2013 AGI was $140,000.The allowable adoption credit is

• A)$ 7,000 in 2012.
• B)$ 9,000 in 2013.
• C)$12,970 in 2013.
• D)$2,000 in 2012 and $7,000 in 2013.

---

Definitions:

Material Wealth

The accumulation of physical and financial assets and resources, often used as an indicator of an individual's or nation's economic status.

Commercial Transaction

An exchange of goods, services, or funds between parties in a business context.

Social Inequality

The uneven distribution of resources, opportunities, and rights among different social statuses and groups in a society.

Group Autonomy

The right or condition of self-governance by a group, often within a larger political or social entity, that allows the group to manage its own affairs independently.