Prior to the effect of the tax credits, Justin's regular income tax liability is $200,000. and his tentative minimum tax is $195,000. Justin reports the following credits. Child tax credit $ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $ $\quad \$ 1,000$
Adoption expenses credit $ \quad $ $ \quad $ $ \quad $ $ \quad $ 5,000 Calculate Justin's tax liability after credits.
A) $190,000
B) $194,000
C) $195,000
D) $200,000

Question

Prior to the effect of the tax credits, Justin's regular income tax liability is $200,000. and his tentative minimum tax is $195,000. Justin reports the following credits. Child tax credit $ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $ $\quad \$ 1,000$
Adoption expenses credit  $ \quad $ $ \quad $ $ \quad $ $ \quad $ 5,000 Calculate Justin's tax liability after credits.
A) $190,000
B) $194,000
C) $195,000
D) $200,000

Quizplus · Accepted Answer

Justin's total credits are $6,000 ($1,000 child tax credit + $5,000 adoption expenses credit).
To calculate his tax liability after credits, we need to subtract his total credits from his regular income tax liability: 
$200,000 regular income tax liability - $6,000 total credits = $194,000 tax liability after credits. 
Therefore, the correct choice is B.

Prior to the Effect of the Tax Credits, Justin's Regular \quad

Prior to the Effect of the Tax Credits, Justin's Regular $\quad$