Mitch, Who Is Single and Has No Dependents, Had AGI

question 117

Multiple Choice

Mitch, who is single and has no dependents, had AGI of $100,000 in 2012.His potential itemized deductions were as follows: What is the amount of Mitch's AMT adjustment for itemized deductions for 2012?

• A)$14,800.
• B)$16,800.
• C)$19,300.
• D)$25,800.
• E)None of the above.

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Definitions:

Relevant Cost

A relevant cost is a cost that will be affected by a decision in the future and is important in business decision-making processes.

Depreciation Charge

An accounting expense recorded to allocate the cost of a tangible asset over its useful life.

Book Value

The value of an asset according to its balance sheet account balance, often different from its market value.