HW5 - Chapter 5 Other Corporate Tax Levies Homework...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
C5-1 Chapter 5: Other Corporate Tax Levies Homework solutions: C5-6 c and e are true. a, b, and d are false. For statement a, tax preference items can only increase taxable income, and thus can only increase AMTI (p. C5-4). For statement b, an alternative tax NOL deduction must be computed which is adjusted in the same way that taxable income is adjusted to arrive at AMTI (p. C5-6). For statement d, the general business credit can offset the corporation's net income tax that is in excess of the greater of (1) the tentative minimum tax or (2) 25% of its net regular tax liability in excess of $25,000. pp. C5-12 and C5-13. C5-10 Included In: Taxable Income Pre-Adjustment AMTI ACE a. No Yes Yes b. No No Yes c. Yes Yes Yes d. Yes a Yes a Yes a e. Yes Yes b No c f. Yes Yes No g. Yes Yes No d a Only the gain related to the current year installment sale collections is included in taxable income and pre-adjustment AMTI. The entire gain is included in ACE. b Excess intangible drilling costs (IDCs) are a tax preference item which increases AMTI. The excess IDC preference is repealed for oil and gas activities (other than for integrated oil companies) for tax years after 1992. c Intangible drilling costs are amortized over a 60-month or longer period. d Only the 80% and 100% dividends-received deductions are allowed when computing ACE.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern