CHAPTER 12--ALTERNATIVE MIN

True false 50 corporations are subject to a positive

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True False 50. Corporations are subject to a positive AMT adjustment equal to 75% of the excess of ACE over AMTI before the ACE adjustment. True False 51. All of a corporation’s AMT is available for carryover as a minimum tax credit regardless of whether the adjustments and preferences originate from timing differences or AMT exclusions. True False 52. Which of the following statements is correct? A. The purpose of the AMT is to replace the regular income tax. B. Adjustments can either increase AMTI or decrease AMTI. C. Tax preferences can either increase AMTI or decrease AMTI. D. Tax preferences can only decrease AMTI. E. None of the above is correct. 5
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53. Meg, who is single and age 36, provides you with the following information from her financial records. Regular income tax liability $ 47,843 AMT adjustments 40,000 AMT preferences 20,000 Taxable income 190,000 Calculate her AMT exemption for 2010. 54. Miriam, who is single and age 36, provides you with the following information from her financial records for 2010. Regular income tax liability $ 42,867 AMT positive adjustments 30,000 AMT preferences 20,000 Taxable income 175,000 Calculate her AMTI for 2010. 55. During its first year of operations, Sherry’s business incurred circulation expenditures of $90,000. Since the income of the business is small, Sherry decides to capitalize the expenditures and to amortize them over 3 years for regular income tax purposes. The AMT adjustment for circulation expenditures for the first year of operations is: 56. If a taxpayer has tentative AMT of $60,000 and AMT of $15,000, what is the regular income tax liability? A. $0. B. $15,000. C. $45,000. D. $75,000. E. None of the above. 57. If a single taxpayer has regular income tax liability of $19,500 and AMTI of $130,000, calculate the AMT for 2010. 6
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58. For regular income tax purposes, Yolanda, who is single, is in the 35% tax bracket. Her AMT base is $220,000. Her tentative AMT is: 59. Agnes is able to reduce her regular income tax liability from $40,000 to $36,000 as the result of the alternative tax on net capital gain. Agnes’ tentative AMT is $50,000.
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  • Spring '12
  • honig
  • Taxation in the United States, regular income tax

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