Question 1

In calculating her taxable income,Rhonda deducts the following itemized deductions.
  Calculate Rhonda's AMT adjustment for itemized deductions.

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Question 2

Bianca and Barney have the following for 2011:

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Question 3

Lavender,Inc.,incurs research and experimental expenditures of $210,000 in 2011.Determine the amount of the AMT adjustment for 2011 and for 2012 if for regular income tax purposes:

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Question 4

In 2011,Louise incurs circulation expenses of $210,000 which she deducts in calculating taxable income.

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Question 5

Luke's itemized deductions in calculating taxable income are as follows:

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Question 6

In September,Dorothy purchases a building for $900,000 to use in her business as a warehouse.Dorothy uses the depreciation method which will provide her with the greatest deduction for regular income tax purposes.

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Question 7

Use the following data to calculate Marlene's AMTI.

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Question 8

Kay,who is single,had taxable income of $0 in 2011.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 2012?

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Question 9

Which of the following statements is correct?

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...

Question 10

Caroline and Clint are married,have no dependents,and file a joint return in 2011.Use the following selected data to calculate their Federal income tax liability.

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Question 11

Smoke,Inc.,provides you with the following information:
  Calculate Smoke's AMT for 2011.

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 ...

Question 12

Use the following selected data to calculate Devon's taxable income.

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Question 13

Frederick sells land and building whose adjusted basis for regular income tax purposes is $287,000 and for AMT purposes is $360,000.The sales proceeds are $700,000.Determine the effect on:

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Question 14

Sage,Inc.,has the following gross receipts and taxable income:
  Is Sage,Inc.,subject to the AMT in 2011?

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Question 15

Cindy,who is single and has no dependents,has adjusted gross income of $50,000 in 2011.Her potential itemized deductions are as follows:
  What is the amount of Cindy's AMT adjustment for itemized deductions for 2011?

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Question 16

Calico,Inc.,has AMTI of $305,000.Calculate the amount of the AMT exemption if:

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Question 17

In May 2010,Egret,Inc.issues options to Andrea,a corporate officer,to purchase 200 shares of Egret stock under an ISO plan.At the date the stock options are issued,the fair market value of the stock is $900 per share and the option price is $1,200 per share.The stock becomes freely transferable in 2011.Andrea exercises the options in November 2010 when the stock is selling for $1,600 per share.She sells the stock in December 2012 for $1,800 per share.

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Question 18

Sand Corporation,a calendar year taxpayer,has alternative minimum taxable income [before adjustment for adjusted current earnings (ACE)] of $750,000 for 2011.If Sand's (ACE)is $975,000,its tentative minimum tax for 2011 is:

Accepted Answer

To calculate the tentative minimum tax, we need to subtract the ACE from the regular taxable income and apply a 20% tax rate to the difference.

Regular taxable income = $750,000 
ACE = $975,000

Adjusted taxable income = $750,000 - $975,000 = -$225,000 (negative because ACE is greater than regular taxable income)

Tentative minimum tax = 20% x -$225,000 = -$45,000 (also negative because adjusted taxable income is negative)

However, the AMT can never be less than 0, so the tentative minimum tax for Sand Corporation is $0.

Therefore, the correct answer is B) $183,750, which is not an option.

Question 19

Calculate the AMT exemption for 2011 if the taxpayer's AMTI is $210,000 and the filing status is:

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Question 20

Mauve,Inc.,has the following for 2010,2011,and 2012 and no prior ACE adjustments.

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Quiz 15: Alternative Minimum Tax

In calculating her taxable income,Rhonda deducts the following itemized deductions. Calculate Rhonda's AMT adjustment for itemized deductions.