3-47, 3-49, 3-53

3-47, 3-49, 3-53 - \$22,500,000 2010 Negative Adjustment...

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ACCT 467 Kristen Jack Chapter 3 – Problems 47, 49, 53 1/29/2012 3-47 Taxable Income = 4,000,000 Depreciation on realty in excess of ADS (placed in service in 1989) = 1,700,000 Excess intangible drilling costs = 500,000 (tax preference) % depletion in excess of property’s adjusted basis = 700,000 (tax preference) (a) AMTI = 4,000,000 + 1,700,000 + 500,000 + 700,000 = \$6,900,000 (b) Tentative minimum tax base = \$6,900,000 (No exemption) (c) Tentative minimum tax = 6,900,000 * 20% = \$1,380,000 (no foreign tax credit) (d) AMT = ((4,000,000 – 335,000) * 35%) + 113,500 = \$1,360,000 3-49 2008 Negative adjustment not yet allowed 2009 Positive Adjustment = (90,000,000 – 60,000,000) * 75% =
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Unformatted text preview: \$22,500,000 2010 Negative Adjustment = (50,000,000 – 40,000,000) * 75% = \$7,500,000 2011 (55,000,000 – 20,000,000) * 75% = 26,250,000 (only up to previous positive adjustment) Negative Adjustment = 22,500,000 – 7,500,000 = \$15,000,000 3-53 Taxable Income = 522,000 Dividends received deduction = 47,000 Accumulated earnings credit = 36,100 Excess charitable contributions = 23,400 Dividends paid = 38,000 Federal income taxes = 177,480 PHC Tax = (522,000 + 47,000 – 177,480 – 23,400 – 38,000) * 15% = \$49,518 Effective Tax Rate = Federal Income Tax + PHC Tax = 177,480 + 49,518 = \$226,998...
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