Test Bank SWFT Comprehensive 2010 ch 15 - CHAPTER 15...

CHAPTER 15
ALTERNATIVE MINIMUM TAX
Instructor: The test items in both the print Test Bank and ExamView test-creation software are
numbered by question type within each chapter. Thus, users of ExamView can more easily pre-
view their selections using the printed Test Bank in the same numbering system.
Learning Objective, Level of Difficulty, Estimated Time to Completion, and the AACSB’s and
AICPA’s Core Competencie s for each test item are located within the item itself.
Status: Q/P
Question/ Present in Prior
Problem Topic Edition Edition
TRUE OR FALSE
1 Purpose of AMT Unchanged 1
2 Direct versus indirect method Modified 2
3 Adjustments Unchanged 3
4 Adjustments versus preferences Unchanged 4
5 Circulation expenditures Modified 5
6 Circulation expenditures Unchanged 6
7 AMT exemption amount Unchanged 7
8 AMT rates Unchanged 8
9 AMT rates and net capital gain Modified 9
10 AMT credits Unchanged 10
11 AMT credits Unchanged 11
12 Tentative AMTI versus regular taxable income Unchanged 12
13 Tentative AMT Modified 13
14 Phaseout of AMT exemption amount Modified 14
15 AMT adjustments Unchanged 15
16 Circulation expenditures: positive and negative Unchanged 16
adjustments
17 Depreciation adjustment Unchanged 17
18 Depreciation adjustment Unchanged 18
19 Depreciation adjustment Unchanged 19
20 Pollution control facilities adjustment Unchanged 20
21 Mining exploration and development expenditures Unchanged 21
adjustment
22 Mining exploration and development expenditures Unchanged 22
adjustment
23 Research and experimental expenditures adjustment Unchanged 23
24 Long-term contracts adjustment Unchanged 24
15-1

15-2 2010 Comprehensive Volume/Test Bank
25 Long-term contracts adjustment Unchanged 25
26 Incentive stock option adjustment Unchanged 26
Status: Q/P
Question/ Present in Prior
Problem Topic Edition Edition
27 Incentive stock option adjustment Modified 27
28 Incentive stock option adjustment Unchanged 28
29 Adjusted gain or loss: basis Unchanged 29
30 Adjusted gain or loss: sale of land New
31 Passive activity loss adjustment Unchanged 31
32 Alternative minimum tax NOL adjustment Unchanged 32
33 Charitable contribution deduction New
34 Gambling loss adjustment Unchanged 34
35 Cutback adjustment Unchanged 35
36 Medical expenses adjustment Unchanged 36
37 Medical expenses adjustment New
38 Unreimbursed employee business expenses Unchanged 38
adjustment
39 Interest on home equity loan adjustment Unchanged 39
40 Personal and dependency exemption adjustment Unchanged 40
41 Percentage depletion preference Unchanged 41
42 IDC preference Unchanged 42
43 Private activity bonds interest preference New
44 Preference for small business stock exclusion Modified 44
45 AMT credit Unchanged 45
46 Corporation: AMT tax rates New
47 Corporation: AMT exemption New
48 Corporation: small corporation exception Unchanged 46
49 Corporation: AMT adjustments Unchanged 47
50 Corporation: AMT adjustments Unchanged 49
51 Corporation: AMT credit Unchanged 50
MULTIPLE CHOICE
1 AMT characteristics Unchanged 1
2 AMT exemption amount Modified 2
3 AMTI calculation Modified 3
4