C12-Chp-03-3-Illustrations-CORP-AMT

C12-Chp-03-3-Illustrations-CORP-AMT - Tab Short Example...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Tab: Short Example File: 8f5c1c47758139f1679123c81b7087887432009f.xls Page: Page 1 Alternative Minimum Tax Worksheet Tax Return Information GAAP 1120 AMTI ACE 1 Sales $500,000 $500,000 $500,000 500,000 2 Cost of Sales (200,000) (200,000) (200,000) (200,000) 3 Gross Margin 300,000 300,000 300,000 300,000 4 Expenses (100,000) (100,000) (100,000) (100,000) 5 Operating income 200,000 200,000 200,000 200,000 6 Private activity bond interest 250,000 250,000 250,000 7 Net income / Taxable Income / AMTI / ACE $450,000 $200,000 $450,000 $450,000 8 Difference (AMTI & ACE) 9 Regular Tax Computation 10 First $50,000 $50,000 15% 7,500 11 Next $25,000 25,000 25% 6,250 12 Next $25,000 25,000 34% 8,500 13 Excess 100,000 39% 39,000 14 Excess 34% 15 Regular Federal Income Tax $61,250 16 Compute Alternative Minimum Tax 17 Regular taxable income before NOL deduction $200,000 18 Plus/minus: AMT adjustments (except ACE adjust.) (Examples??) 19 Plus: Tax preferences (Examples??) 20 Private activity bond interest 250,000 21 Equals: AMTI before AMT NOL deduction & ACE adjustment 450,000 22 Plus/minus: ACE adjustment (75% of ACE minus AMTI) 23 Equals: AMTI before AMT NOL deduction 450,000 24 25 Equals: Alternative minimum taxable income (AMTI) 450,000 26 Minus: Exemption (See Computation Below) 0 27 Equals: Tentative alternative minimum tax base 450,000 28 Times: 20% rate 20% 29
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern