Jackson, Inc., has the following items related to the AMT.
Alternative minimum tax base
$9,850,290
Regular tax
1,120,152
Foreign AMT tax credit
123,000
Cost of goods sold
2,000,000
The corporation's AMT, if any, is:

Question

Quizplus · Accepted Answer

The AMT is calculated as 20% of the alternative minimum tax base, which is $9,850,290. This equals $1,970,058. Subtract the regular tax ($1,120,152) and the foreign AMT tax credit ($123,000) from this amount to get the AMT: $1,970,058 - $1,120,152 - $123,000 = $726,906.