Lee and Whitney Incurred Qualified Adoption Expenses in 2013 of $2,000,and

question 40

Multiple Choice

Lee and Whitney incurred qualified adoption expenses in 2013 of $2,000,and then incurred $7,000 more in 2014 when the adoption of their child became final.Their 2013 AGI was $120,000 and their 2014 AGI was $140,000.The allowable adoption credit is

• A)$ 7,000 in 2014.
• B)$ 9,000 in 2014.
• C)$13,190 in 2014.
• D)$2,000 in 2013 and $7,000 in 2014.

---

Definitions:

Owner's Capital Account

An equity account that represents the amount of money that the owner has invested in the business plus any profits or minus any losses.