40. In computing AMTI, tax preference items are

A) excluded.

B) added only.

C) subtracted only.

D) either added or subtracted.

41. In 2018, Essam and Katia have alternative minimum taxable income of $125,000 and file a joint return. For purposes of computing the alternative minimum tax, their exemption is

A) $0.

B) $70,300.

C) $84,500.

D) $109,400.

42. Sam and Esterina are married, file a joint return, and have two children, ages 9 and 11. Their combined AGI is $65,000. Sam's earned income is $40,000; Esterina's is $25,000. They incur $6,500 of child care expenses to enable them to be employed during the current year. Their child and dependent care credit is

A) $1,200.

B) $1,300.

C) $1,800.

D) $6,000.