some_common_ACE_adjustments - Alternative minimum taxable...

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Some common ACE adjustments Part 1: Compute ACE. RedSox Inc., reported the following information: Required : Compute RedSox’s adjusted current earnings (ACE) Part 2: Cumulative ACE adjustment : The Whaler Corporation reported the following amounts: Year Preadjusted AMTI ACE 2006 80,000,000 70,000,000 2007 60,000,000 90,000,000 2008 50,000,000 40,000,000 2009 60,000,000 20,000,000 Required : Calculate Whaler’s positive and negative ACE adjustment for each year.
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Unformatted text preview: Alternative minimum taxable income 5,120,000 Municipal bond interest 630,000 Expenses related to municipal bonds 50,000 Key employee life insurance proceeds in excess of cash surrender value 2,000,000 Excess of FIFO over LIFO Amortization of organizational costs 160,000 100,000 Cost of goods sold 6,220,000 Advertising expenses 760,000 Loss between related parties 260,000 Key-employee life insurance premiums 300,000...
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