[6] Scott and Cindy Muir had alternative minimum taxable income of $970,000 in the current year and file a joint return. For purposes of computing the alternative minimum tax, their exemption is

A. $25,000 B. $55,850 C. $71,700 D. $111,700

[7] A taxpayer does not have to pay estimated taxes if

A. The taxpayer's tax liability for the previous year was less than $1,000.B. The taxpayer's withholding covers 90% of the tax liability for the previous year.C. The taxpayer's Earned Income Credit will exceed his or her tax liability for the current year. D. All of the answers are correct.

[8] Ms. W, who is single, determined that her total tax liability for Year 2 would be $10,000. W is required to make estimated tax payments if

A. Her Year 1 tax liability was $12,000 and her Year 2 income tax withholding will be $9,750.

B. Her Year 1 tax liability was $12,000 and her Year 2 income tax withholding will be $9,000.

C. Her Year 1 tax liability was $5,000 and her Year 2 income tax withholding will be $6,000.

D. Her Year 1 tax liability was $9,000 and her Year 2 income tax withholding will be $8,500.