Alternative Minimum Tax (00674496)
final exam score:
final exam status:
80%
Question 6
Incorrect
T.Y. Retailer, Inc. makes a preliminary calculation of its AMTI as $300,000 and then determines that its adjusted current earnings are $200,000. For prior years it had to increase its AMTI by a total of $300,000 because of its adjusted current earnings and had to decrease its AMTI by a total of $250,000 because of its adjusted current earnings. How do its adjusted current earnings affect its AMTI?
AMTI is reduced by $25,000
AMTI is reduced by $50,000
(You Answered) AMTI is reduced by $75,000
AMTI is reduced by $100,000
Question 14
Incorrect
For 2014, J.T. Marketing, Inc., a C corporation that is not exempt from the AMT, has taxable income of $450,000 and a regular tax of $150,000 (after deducting a regular tax foreign tax credit of $3,000). The corporation's AMTI is $765,000, and its alternative minimum tax foreign tax credit is $2,500. How much AMT does the corporation owe?
$0
$500
(You Answered) $2,500
$3,000
Question 15
Incorrect
For 2014, Joinder Bicycles, Inc., a C corporation that is not exempt from the AMT, has taxable income of $75,000 and a regular tax of $8,750 (after deducting its regular foreign tax credit of $5,000). Its AMTI is $250,000, and its alternative minimum tax foreign tax credit is $4,000. How much AMT does the corporation owe?
(You Answered) $29,250
$33,450
$34,250
$38,250
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