CHAPTER 12--ALTERNATIVE MIN

Erin owns a mineral property that had a basis of

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77. Erin owns a mineral property that had a basis of $10,000 at the beginning of the year. The property qualifies for a 15% depletion rate. Gross income from the property was $120,000 and net income before the percentage depletion deduction was $50,000. What is Erin’s tax preference for excess depletion? A. $8,000 B. $10,000. C. $18,000. D. $0. E. None of the above. 78. Which of the following can produce an AMT preference rather than an AMT adjustment? 79. Celia and Amos, who are married filing jointly, have one dependent and do not itemize deductions. They have taxable income of $82,000 and tax preferences of $53,000 in 2010. What is their AMT base for 2010? 80. Robin, who is a head of household and age 42, provides you with the following information from his financial records for 2010. Regular income tax liability $ 43,118 AMT adjustments 30,000 AMT preferences 20,000 Taxable income 185,000 Calculate his AMT for 2010. 81. Kay, who is single, had taxable income of $0 in 2010. She has positive timing adjustments of $200,000 and exclusion items of $100,000 for the year. What is the amount of her alternative minimum tax credit for carryover to 2011? A. $80,500. B. $66,642. C. $14,950. D. $0. E. None of the above. 11
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82. Green Corporation, a calendar year taxpayer, has alternative minimum taxable income [before adjustment for adjusted current earnings (ACE)] of $600,000 for 2010. If Green’s (ACE) is $1,500,000, its tentative minimum tax for 2010 is: 83. Mauve, Inc., has the following for 2009, 2010, and 2011 and no prior ACE adjustments. 2009 2010 2011 Pre-adjusted AMTI $12,000 $15,000 $8,000 Adjusted current earnings 10,000 17,000 5,000 What is the ACE adjustment for each of the three years? 2009 2010 2011 84. Which of the following statements is correct? 85. Use the following data to calculate Melba’s AMTI. Taxable income $152,000 AMT adjustments Positive 45,000 Negative (15,000) Tax preferences 20,000 12
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86. Use the following selected data to calculate Aaron’s taxable income. Tax preferences $ 60,000 Positive AMT adjustments 40,000 Negative AMT adjustments 10,000 AMTI 309,000 87. Arlene, who is single, has taxable income for 2010 of $112,000. Calculate her alternative minimum tax, if any, given the following additional information.
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  • Spring '12
  • honig
  • Taxation in the United States, regular income tax

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