Identify which of the following statement is true.

Question

Quizplus · Accepted Answer

The statement that is true is C, which states that small corporations whose average gross receipts for each of the three preceding years are $7.5 million or less are exempted from the AMT. The other statements are false. The corporate alternative minimum tax rate is 20%, not 35% (as of 2021). AMT is not a permanent increase to the corporate tax liability, as it is a separate calculation from regular tax liability. Finally, the excess of tax depreciation over book depreciation decreases AMTI, not increases it.

Identify Which of the Following Statement Is True