Celia and Amos,who Are Married Filing Jointly,have One Dependent and Do

question 1

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 2011.What is their AMT base for 2011?

• A) $0.
• B) $85,175.
• C) $94,450.
• D) $157,700.
• E) None of the above.

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Definitions:

Direct Labor

The labor costs directly traceable to the production of goods, including wages of workers on the production line.

Factory Overhead

All manufacturing costs that are not directly related to the production of goods, including costs associated with operating the factory.

Overhead Costs

Fixed and variable costs incurred in the operation of a business that do not directly contribute to the production of goods or services.

Individual Processes

Refers to the distinct and separate steps or stages involved in the production or execution of a service or product.