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 $1,000 Adoption expenses credit 5,000 Calculate Justin's tax liability after credits.
A)$190,000
B)$194,000
C)$195,000
D)$200,000
E)None of the above

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 $1,000 Adoption expenses credit 5,000 ​ Calculate Justin's tax liability after credits.
A)$190,000
B)$194,000
C)$195,000
D)$200,000
E)None of the above

Quizplus · Accepted Answer

Justin's total credit is $6,000 ($1,000 + $5,000).
His regular income tax liability is $200,000.
Therefore, his tax liability after credits is $194,000 ($200,000 - $6,000).

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