Adoption Credit
Response to the following problem:
In 2013, a married couple paid $14,000 in qualified adoption expenses to adopt a child that is a U.S. citizen. The adoption was finalized in 2014
a. Compute the adoption credit if the couple's modified AGI is $199,988 in 2013 and $208,871 in 2014. In what year(s) is the credit taken?
b. How, if at all, would your answer to Part a. change if the couple adopted a foreign child?
c. How, if at all, would your answer to Part b. change if the adoption fell through?