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Sarah Is Single with No Dependents

question 45

Essay

Sarah is single with no dependents.During 2016,Sarah has $86,000 of taxable income.She has
$14,000 of positive AMT adjustments and $24,000 of tax preferences.Sarah does not itemize her deductions but takes the standard deduction.Calculate Sarah's AMTI.


Definitions:

Journal Entry

A record in the accounting journals that reflects the debit and credit effects of a financial transaction in the double-entry bookkeeping system.

Transaction Date

The specific date on which a financial transaction occurs, significant for recording and reporting purposes.

Account Balances

The amounts of money held in financial accounts, calculated as the funds deposited minus funds withdrawn, plus any interest or capital gains.

Prepaid Account

An account reflecting payments made in advance for goods or services, which are recognized as expenses when the goods or services are actually consumed.

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