Eastern did not elect to use the straight line method

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Unformatted text preview: served. Maxixishere Pdf Collection Becker CPA Review, PassMaster Questions Lecture: Regulation 3 3. Accounts and notes receivable arising from sales or services in the taxpayer’s business. 4. Copyrights, literary, musical or artistic compositions. 5. Treasury stock. CPA-02062 Type1 M/C A-D 23. CPA-02062 ARE Nov 95 #15 Corr Ans: A PM#33 R 3-01 Page 36 Eastern Corp., a calendar year corporation, was formed January 3, 1994, and on that date placed fiveyear property in service. The property was depreciated under the general MACRS system. Eastern did not elect to use the straight-line method. The following information pertains to Eastern: Eastern's 1994 taxable income $300,000 Adjustment for the accelerated depreciation taken on 1994 five-year property 1,000 1994 tax-exempt interest from specified private activity bonds issued after August 7, 1986 5,000 What was Eastern's 1994 alternative minimum taxable income before the adjusted current earnings (ACE) adjustment? a. b. c. d. $306,000 $30...
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