Ashly Is Able to Reduce Her Regular Income Tax Liability

question 79

Multiple Choice

Ashly is able to reduce her regular income tax liability from $47,000 to $43,500 as the result of the alternative tax on net capital gain.Ashly's tentative AMT is $51,000.

• A)Ashly's tax liability is reduced by $3,500 as the result of the alternative tax calculation on net capital gain.
• B)Ashly's AMT is increased by $3,500 as the result of the alternative tax calculation on net capital gain.
• C)Ashly's tax liability is $43,500.
• D)Ashly's tax liability is $47,000.
• E)None of these.

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Definitions:

Military Adventurism

Refers to the aggressive or risky military actions by a country without regard for potential consequences, often to promote political or ideological goals.

Covert Operations

Secret activities carried out by governments or organizations usually aimed at influencing conditions in foreign countries without revealing their source.

CIA

Central Intelligence Agency, a civilian foreign intelligence service of the federal government of the United States, tasked with gathering, processing, and analyzing national security information.

Standing Army

A permanent, professional army maintained during both war and peace times.