Sage Corporation, a calendar year corporation, has alternative minimum taxable income (before any exemption) of $1,200,000 for 2009.The company is not a small corporation.If the regular corporate tax is $225,000, Sage's alternative minimum tax for 2009 is

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The alternative minimum tax (AMT) is calculated as 20% of the alternative minimum taxable income (AMTI) minus the regular tax. Here, 20% of $1,200,000 is $240,000. Subtracting the regular tax of $225,000 gives an AMT of $15,000.

Sage Corporation, a Calendar Year Corporation, Has Alternative Minimum Taxable