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:

Safety Stock

Inventory buffer maintained to guard against supply chain variability and ensure product availability.

Reorder Point

The level of inventory which triggers an action to replenish that particular inventory stock.

Quantity Discount

A reduced price for items purchased in large quantities.

Order Quantity

The amount of an item that is ordered from a supplier to replenish inventory or to fulfill customer demand.