CHAPTER 15 - CHAPTER 15 ALTERNATIVE MINIMUM TAX 1. Donna,...

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CHAPTER 15 ALTERNATIVE MINIMUM TAX 1. Donna, who is single and age 33, provides you with the following information from her financial records for 2009. Regular income tax liability $ 27,578 AMT adjustments 40,000 AMT preferences 90,000 Taxable income 110,000 Calculate her AMT for 2009. a. $0. b. $59,549. c. $31,971. d. $23,046. e. None of the above. 2. Kenya, who is single and age 32, provides you with the following information from her financial records for 2009. Regular income tax liability $  49,100 AMT positive adjustments 30,000 AMT preferences 20,000 Taxable income 185,000 Calculate her AMTI for 2009. a. $57,729. b. $188,300. c. $218,925. d. $235,000. e. None of the above. 3. Marcus, who is a head of household and age 45, provides you with the following information from his financial records for 2009.
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Regular income tax liability $  37,883 AMT adjustments 30,000 AMT preferences 20,000 Taxable income 175,000 Calculate his AMT for 2009. a. $8,541. b. $16,416. c. $15,788. d. $54,299. e. None of the above. 4. Aaron, who is single, owns a personal residence in the city. He also owns a condo near the ocean. He uses the condo as a vacation home. In March 2009 he borrowed $50,000 on a home equity loan and used the proceeds to acquire a luxury automobile. During 2009, he paid the following amounts of interest: on his personal residence $12,000 on the condo 6,000 on the home equity loan 5,000 on credit card obligations 4,000 What amount, if any, must Aaron recognize as an AMT adjustment in 2009? a. $0. b. $4,000. c. $5,000.
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d. $6,000. e. None of the above. 5. Jerome acquires used 7-year personal property for $30,000 to use in his  business in February 2009.  Jerome does not elect § 179 expensing and elects  not to take the additional first-year depreciation, but does take the maximum  cost recovery deduction. As a result, Jerome will have a positive AMT  adjustment in 2009 of what amount? a.
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This note was uploaded on 04/01/2011 for the course ACCT 360 taught by Professor Mill during the Spring '11 term at Davenport.

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CHAPTER 15 - CHAPTER 15 ALTERNATIVE MINIMUM TAX 1. Donna,...

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