For regular income tax purposes, Yolanda, who is single, is in the 32% tax bracket. Her AMT base is $420,000. Her tentative AMT is:
A) $49,686.
B) $109,200.
C) $113,778.
D) $117,600.
E) None of the above.

Question

Quizplus · Accepted Answer

The AMT (Alternative Minimum Tax) is calculated at a rate of 26% on the first $220,700 and 28% on the amount exceeding $220,700. For Yolanda, the calculation is: (26% of $220,700) + (28% of ($420,000 - $220,700)) = $57,382 + $56,396 = $113,778.

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