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 TAMU’s 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 property’s adjusted basis 700,000...
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- Fall '08
- Taxation in the United States, regular income tax