Drury Corporation, which was organized three years ago, reports the following adjusted current earnings (ACE) and preadjustment alternative minimum taxable income (AMTI) amounts.
$$\begin{array} { | l | c | c | c | }
\hline & \begin{array} { c }
\text { Second } \
\text { previous year }
\end{array} & \text { Last year } & \text { Current year } \
\hline \text { ACE } & \$ 3,000 & \$ 2,000 & \$ 1,000 \
\text { AMTI (excluding ACE adjustment) } & 2,500 & 2,000 & 2,500 \
\hline
\end{array}$$ What is the ACE adjustment to increase (or decrease) taxable income to arrive at AMTI for the second previous year?

Question

Drury Corporation, which was organized three years ago, reports the following adjusted current earnings (ACE) and preadjustment alternative minimum taxable income (AMTI) amounts.
 $$\begin{array} { | l | c | c | c | } 
\hline & \begin{array} { c } 
\text { Second } \
\text { previous year }
\end{array} & \text { Last year } & \text { Current year } \
\hline \text { ACE } & \$ 3,000 & \$ 2,000 & \$ 1,000 \
\text { AMTI (excluding ACE adjustment) } & 2,500 & 2,000 & 2,500 \
\hline
\end{array}$$ What is the ACE adjustment to increase (or decrease) taxable income to arrive at AMTI for the second previous year?

Quizplus · Accepted Answer

The Answer of Drury Corporation, which was organized three years ago, reports the following adjusted current earnings (ACE) and preadjustment alternative minimum taxable income (AMTI) amounts.
 $$\begin{array} { | l | c | c | c | } 
\hline & \begin{array} { c } 
\text { Second } \
\text { previous year }
\end{array} & \text { Last year } & \text { Current year } \
\hline \text { ACE } & \$ 3,000 & \$ 2,000 & \$ 1,000 \
\text { AMTI (excluding ACE adjustment) } & 2,500 & 2,000 & 2,500 \
\hline
\end{array}$$ What is the ACE adjustment to increase (or decrease) taxable income to arrive at AMTI for the second previous year?

Drury Corporation, Which Was Organized Three Years Ago, Reports the Following