McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

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{Research} In year 1, Lazy corporation reported a $500,000 net operating loss for regular tax purposes and a $450,000 net operating loss for alternative minimum tax purposes (called an alternative tax net operating loss ).In year 2, Lazy reported $450,000 of taxable income before deducting its net operating loss carryover from year 1 (it elected to forgo the net operating loss carry back).It also reported $450,000 of alternative minimum taxable income before taking the alternative tax net operating loss carryover into account (it did not report any preference or adjustments in year 2).(Note that, subject to certain limitations, alternative tax NOLs are deducted from AMTI in the process of determining the alternative minimum tax. What is Lazy Corporation's year 2 tax liability? Assume Lazy did not have any MTC carryover from a prior year.