Flywest Airlines, Inc. has regular taxable income of $190 million. It also has $10 million of AMT preference items, a $5 million unfavorable depreciation adjustment, and a $2 million favorable ACE adjustment (after the 75% adjustment). What is Flywest'salternative minimum tax income (AMTI)?

Question

Quizplus · Accepted Answer

AMTI = regular taxable income + AMT preference items - unfavorable depreciation adjustment + favorable ACE adjustment
AMTI = $190 million + $10 million - $5 million + ($2 million x 0.25)
AMTI = $203 million