Celia and Amos, Who Are Married Filing Jointly, Have One

question 7

Multiple Choice

Celia and Amos, who are married filing jointly, have one dependent and do not itemize deductions. They have taxable income of $82,000 and tax preferences of $53,000 in 2012. What is their AMT base for 2012?

• A)$0.
• B)$85,925.
• C)$94,450.
• D)$158,300.
• E)None of the above.

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Definitions:

Gallbladder

A small, pear-shaped organ located beneath the liver, responsible for storing and concentrating bile, a digestion-aiding fluid.

Cholecystokinin

A hormone secreted by the small intestine that aids digestion by stimulating the gallbladder to release bile and the pancreas to secrete enzymes.

Bile

A substance created in the liver and stored in the gallbladder. Bile is a bitter, yellow-green fluid that is used in the digestion of fats.

Alimentary Canal

The digestive tract from the mouth to the anus, including all the organs involved in digestion and absorption.