C12-Chp-03-2-Homework-Sol-AMT-PHC-AET-EXCEL-2012

C12-Chp-03-2-Homework-Sol-AMT-PHC-AET-EXCEL-2012 - Tab: 1....

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Tab: 1. Concepts-Also-DPAD File: a035d039e8463a55882341b19ea747c4f96fe670.xls Page 1 of 4 No Ans 1 B Accumulated earnings tax is not reported on a schedule attached to annual income tax return 2 B Intent is important for accumulated earnings tax 3 B This is a personal holding company 4 D Alston Corp. is a personal holding company Meets both tests [in §541(a)(1) and §541(a)(2)] 5 A You are least likely to avoid the AMT after it is computed. 6,7 A Total Operations ($000) Makes Imports Total Sales $2,500 $1,500 $4,000 62.50% Cost of Sales ($1,000) ($750) ($1,750) 57.14% Gross Margin $1,500 $750 $2,250 Other expenses ($250) ($400) Net Income $1,850 QPAI $1,250 DPAD - 6% 9% 6 DPAD $112.50 ($113) 7 Taxable income $1,737.50 Use Simplified Deduction Method What is taxable income for the year (2008)?
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Tab: 2. AMT File: a035d039e8463a55882341b19ea747c4f96fe670.xls Page 2 of 4 No Ans 8 B Small corporations are exempt from the AMT. 9 A If TMT exceeds regular tax, the excess is paid in addition to the regular tax 10 B Kona Corp. AMT Exemption AMTI $300,000 Floor 150,000 Excess over Floor 150,000 Phase-out Rate 25% Reduction in exemption 37,500 Unadjusted Exemption Amount 40,000 Exemption allowed $2,500 11 B Tentative AMT $140,000 Regular Tax $136,000 AMT $4,000 12 D Corporation gets full AMT exemption - not in phase-out range 13 B See C11-Chp-03-3-AMT-Worksheet.xls AMT Corporation - Alternative Minimum Tax Taxable income $100,000 Tax preference items & Adjustments 170,000 Alternative minimum taxable income 270,000 Minus: Exemption ($40,000 -
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This note was uploaded on 03/09/2012 for the course ACCT 6120 taught by Professor Godfrey,h during the Spring '08 term at UNC Charlotte.

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C12-Chp-03-2-Homework-Sol-AMT-PHC-AET-EXCEL-2012 - Tab: 1....

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