Cpa 02239 type1 mc 118 cpa 02239 a d nov 91 ii 47 corr

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Unformatted text preview: : C PM#21 R 3-99 Page 37 Rona Corp.'s 1998 alternative minimum taxable income was $200,000. The exempt portion of Rona's 1998 alternative minimum taxable income was (assume Rona does not meet the definition of a small corporation): a. b. c. d. $0 $12,500 $27,500 $52,500 CPA-02236 Explanation Choice "c" is correct. The exempt portion of Rona's 1998 alternative minimum taxable income is $27,500, computed as follows: Initial exemption amount Exemption limitation: Alternative minimum taxable income Phase-out level Excess amount Phase-out percentage Reduction to exemption amount $40,000 $200,000 150,000 50,000 25% <12,500> Rona's allowable exemption amount $27,500 58 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Maxixishere Pdf Collection Becker CPA Review, PassMaster Questions Lecture: Regulation 3 Rule: The normal alternative minimum taxable income exemption amount for corporations is $40,000. It must be reduced by 25% of the amount by which AMTI exceeds $150,000, causing the exemption amount to be completely phased out when AMTI is $310,0...
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This note was uploaded on 06/14/2013 for the course ACCOUNTING Regulation taught by Professor Becker during the Fall '10 term at Keller Graduate School of Management.

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