Benita expensed mining exploration and development costs of $500,000 incurred in the current tax year. She will be required to make negative AMT adjustments for each of the next ten years and a positive AMT adjustment in the current tax year.

Question

Quizplus · Accepted Answer

Mining exploration and development costs are typically capitalized and amortized over a period of time, leading to positive AMT adjustments in future years, not negative ones.

Benita Expensed Mining Exploration and Development Costs of $500,000 Incurred