Which of the following items will be a deduction from unadjusted AMTI in

Which of the following items will be a deduction from

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75. Which of the following items will be a deduction from unadjusted AMTI in arriving at ACE?a. Federal income tax.b. 80% dividends received deduction.c. Penalties and fines.d. Premiums paid on key employee insurance.e. None of the above.ANSWER:dItems a., b., and c. have no effect.RATIONALE:
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76. Which of the following items will be an addition to AMTI in arriving at ACE?RATIONALE:77. Which of the following has no effect in arriving at ACE?78. Which of the following is added in arriving at ACE?79. Which statement is false?a. The starting point for computing AMTI is taxable income.b. A tax preference is added to taxable income.c. The ACE adjustment can be a negative amount.d. The starting point for computing ACE is taxable income.e. None of the above.ANSWER:d80. Which of the following items will have an effect (add or subtract) on unadjusted AMTI to arrive at ACE?
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81. A small corporation with unused minimum tax credits may use what percentage of regular tax as a minimum credit in 2014?82.Ford Corporation, a calendar year corporation, has alternative minimum taxable income (before any exemption) of $1.28 million for 2014. The company is not a small corporation. If the regular corporate tax is $209,000, Ford’s alternative minimum tax for 2014 is:
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83. In 2014, May Corporation (a calendar year taxpayer) had the following transactions:Taxable income$4,000,000Mining exploration costs claimed1,000,000Percentage depletion claimed (the property had a zero adjusted basis)2,400,000Donation of stock held since 1988 as investment (basis of $100,000and fair market value of $400,000) to a qualified charity400,000Costs of goods sold960,000For 2014, May Corporation’s AMTI is:a. $6,300,000.b. $7,150,000.c. $7,250,000.d. $7,300,000.e. None of the above.ANSWER:dRATIONALE: AMTI is computed as follows: Taxable income$4,000,000Adjustments—Excess mining explorations costs [$1,000,000 (amount expensed) –$100,000 (amount allowed over a 10-year amortization period)]900,000Tax preferences—Excess percentage depletion2,400,000AMTI$7,300,000
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