Sand Corporation,a calendar year C corporation,reports alternative minimum taxable income of $900,000 for 2016.Sand's tentative minimum tax for 2016 is:
A)$0.
B)$40,000.
C)$180,000.
D)$191,250.
E)None of the above.

Question

Quizplus · Accepted Answer

The tentative minimum tax for a C corporation is calculated as 20% of the alternative minimum taxable income. Therefore, 20% of $900,000 is $180,000.

Sand Corporation,a Calendar Year C Corporation,reports Alternative Minimum Taxable Income