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

question 69

Multiple Choice

Chad and Jaqueline are married and have AGI of $150,000.In 2013 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:

Coupon Rate

Each year, the interest rate given on a bond calculated as a percentage of its nominal value.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates, expressed in years.

Interest Rate Risk

The potential for investment losses due to fluctuations in interest rates, affecting the value of interest-bearing assets.

Default Risk

The possibility that a borrower will fail to meet the obligations of a debt agreement.