For the current year, Steven's tentative alternative minimum tax is $24,360. His regular tax liability is $23,000. Steven has $24,000 in taxes withheld from his salary.
I.Steven's alternative minimum tax is $1,360
II.Steven's tax liability is $23,000.
III.Steven will have to pay an additional $360 in tax.
IV.Steven's total tax liability is $24,360

A)Only statement I is correct.
B)Statements II and III are correct.
C)Statements I and IV are correct.
D)Statements I, III, and IV are correct.
E)None of the above are correct.

Question

For the current year, Steven's tentative alternative minimum tax is $24,360. His regular tax liability is $23,000. Steven has $24,000 in taxes withheld from his salary.
I.Steven's alternative minimum tax is $1,360
II.Steven's tax liability is $23,000.
III.Steven will have to pay an additional $360 in tax.
IV.Steven's total tax liability is $24,360
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A)Only statement I is correct.
B)Statements II and III are correct.
C)Statements I and IV are correct.
D)Statements I, III, and IV are correct.
E)None of the above are correct.

Quizplus · Accepted Answer

Statement I is correct because it provides the amount of Steven's tentative alternative minimum tax.

Statement II is correct because it provides the amount of Steven's regular tax liability.

Statement III is correct because Steven's alternative minimum tax ($24,360) exceeds his taxes withheld ($24,000), meaning that he will have to pay the difference of $360 in tax.

Statement IV is correct because it provides Steven's total tax liability, which is the sum of his regular tax liability ($23,000) and his alternative minimum tax ($24,360). So, his total tax liability is $24,360.

For the Current Year, Steven's Tentative Alternative Minimum Tax Is