Margolin Corporation has regular taxable income of $120,000.It has positive adjustments of $90,000,preference items of $50,000 and negative adjustments of $40,000.What is its alternative minimum tax?

Question

Quizplus · Accepted Answer

$120,000 + $90,000 Pos.adj.+ $50,000 Pref.- $40,000 Neg.adj.= $220,000; exemp.= ($220,000 - $150,000).25 = $17,500; $40,000 - $17,500 = $22,500; ($220,000 - $22,500).20 = $39,500 TAMT; ($20,000 x .39)+ $22,250 = $30,050 regular tax; $39,500 - $30,050 = $9,450 AMT

Margolin Corporation Has Regular Taxable Income of $120,000