California individual taxation

Chapter 11 Other Taxes

Obtain the latest FTB, Form 540, Schedule P, and related Instructions to answer.

Use the information below to answer questions 1 through 4.

Mindor was an elusive computer programmer working exclusively on the dark web until the United States Department of Treasury caught up to him. After Mindor paid his debt to society he was recruited and accepted an offer to work for the federal government uncovering and eliminating various methods used by hackers to disrupt commerce and defraud its citizens. Mindor was paid handsomely for his knowledge and expertise in an amount well above $200,000 per year. Other information relating to Mindors tax return follow: Federal filing status: Single Total itemized deductions $96,228 Federal Schedule A, Line 4 $15,000 Federal AGI $248,936 Personal and real property taxes $34,528 Mortgage interest not used to buy, build or improve home $6,000 Miscellaneous itemized deductions $700

1. What is Mindors exemption amount for Alternative Minimum Tax purposes prior to phase-out reduction? a. $64,089 b. $73,748 c. $200,534 d. $0

2. What is Mindors exemption amount for Alternative Minimum Tax purposes after phase-out? a. $64,089 b. $73,748 c. $200,534 d. $0

3. What is Mindors tentative minimum tax? a. $0 b. $6,207 c. $11,370 d. $17,577 4. What is Mindors alternative minimum tax? a. $0 b. $6,207 c. $11,370 d. $17,577

Use the information below to answer questions 5 through 10.

Mike and Carol are married and file jointly. They are both in demand in their respective industries and combined make more than $700,000 each year. Other information relating to Mike and Carols tax return follow: Federal filing status: Married Filing Jointly Total itemized deductions $87,278 Federal Schedule A, Line 4 $3,200 Federal AGI $653,441 Personal and real property taxes $42,578 Mortgage interest not used to buy, build or improve home $15,000 Miscellaneous itemized deductions $1,500

5. What is the couples exemption amount for Alternative Minimum Tax purposes prior to phase-out reduction? a. $0 b. $98,330 c. $107,542 d. $124,556

6. What is the couples exemption amount for Alternative Minimum Tax purposes after phase-out? a. $0 b. $98,330 c. $107,542 d. $124,445

7. What is the couples total adjustments on line 14 of Schedule P? a. $0 b. $98,330 c. $107,542 d. $124,556

8. What is the couples regular tax before credits from Form 540, line 31? a. $4,505 b. $49,319 c. $51,767 d. $2,448

9. What is the couples tentative minimum tax? a. $4,505 b. $49,319 c. $51,767 d. $2,448

10. What is the couples alternative minimum tax? a. $4,505 b. $49,319 c. $51,767 d. $2,448