corporate_AMT_examples - owns an office building with a...

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Corporate AMT examples Part 1 : For 2009, the Lowell Corporation reported the following transactions: Required : [a] Compute Lowell Corporation’s AMTI. [b] Determine the tentative minimum tax base. [c] Compute the tentative alternative minimum tax. [d] What is the amount of Lowell’s AMT? Part 2 : The TAMU Corporation reported the following information for 2009: Gross profit (sales – cost of goods sold) 8,000,000 Installment gain (recognized in 2009) 1,000,000 Dividends received (less than 20% ownership) 200,000 Tax-exempt interest income 3,000,000 Operating expenses (4,071,800) Charitable contribution (100,000) NOL carry forward (4,500,000) In addition, TAMU: reports that the tax exempt bonds were issued by the local county government to pay for the construction of new police & fire stations and road construction
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Unformatted text preview: owns an office building with a depreciable basis of $5,000,000 (acquired in 1997) has an AMT NOL carry forward $4,000,000 sold land on the installment basis reporting 40% of the gain in 2009 Required : [a] Compute TAMUs taxable income and regular income tax. [b] Compute TAMU's adjusted current earnings. [c] Compute TAMU's alternative minimum taxable income and AMT, if any. Taxable income 5,000,000 Cost recovery real property (in service in 1990) Regular income tax 3,700,000 ADS 2,000,000 Cost recovery pollution control facility Regular income tax 450,000 ADS 250,000 Tax-exempt interest on qualified private activity bonds 300,000 Percentage depletion in excess of propertys adjusted basis 700,000...
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