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Daddy Warbucks Is in the Process of Adopting Annie from a New

Question 75

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Daddy Warbucks is in the process of adopting Annie from a New York orphanage.He pays $7,000 in 2016,and $7,500 in 2017.Daddy Warbucks' AGI for 2017 is $165,000.

a.How much is the adoption credit that Daddy Warbucks may claim for 2017 if the adoption becomes final in 2017?
b.How much is the adoption credit that Daddy Warbucks may claim for 2017 if the adoption becomes final in 2018?
c.How much is the adoption credit that Daddy Warbucks may claim for 2017 if the adoption falls through and is never finalized?

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a.$13,570.$14,500 ($7,000 + $7...

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