For regular income tax purposes, Yolanda, who is single, is in the 35% tax bracket. Her AMT base is $220,000. Her tentative AMT is:
A) $57,200.
B) $57,950.
C) $61,600.
D) $77,000.
E) None of the above.

Question

Quizplus · Accepted Answer

To calculate the tentative AMT, we need to calculate Yolanda's AMT income by adding back all the adjustments and preferences that were subtracted from her regular taxable income. Since no information is provided about these adjustments and preferences, we assume they are zero for this question. 
Yolanda's AMT income is equal to her AMT base of $220,000. 
The tentative AMT is calculated by applying the AMT tax rates to the AMT income. For 2021, the AMT tax rate is 26% on the first $199,900 of AMT income and 28% on any additional AMT income above this threshold. 
So, the tentative AMT for Yolanda's AMT income of $220,000 is calculated as follows: 
$199,900 x 26% = $51,974
($220,000 - $199,900) x 28% = $6,976
Total tentative AMT = $51,974 + $6,976 = $58,950
Therefore, the answer is B, $57,950, which is the closest choice to the calculated amount.

For Regular Income Tax Purposes, Yolanda, Who Is Single, Is