corporate_AMT_examples_solutions

corporate_AMT_examples_solutions - Corporate AMT examples...

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Corporate AMT examples – Solution Part 1 : For 2009, Lowell Corporation had 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 Lowell’s AMT? Solution : 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 Taxable income 5,000,000 Adjustments Accelerated depreciation in excess of straight line 1,700,000 Amortization of pollution control facilities over ADS 200,000 1,900,000 Tax preference items Tax-exempt interest on private activity bonds 300,000 Percentage depletion in excess of the property’s basis 700,000 1,000,000 Plus (minus): ACE adjustment - 0 - AMTI 7,900,000 Less: Exemption ($40,000)
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This note was uploaded on 03/04/2010 for the course TAX 6845 taught by Professor Kelliher,c during the Fall '08 term at University of Central Florida.

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corporate_AMT_examples_solutions - Corporate AMT examples...

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