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)$50,348.
B)$109,200.
C)$113,704.
D)$117,600.

Question

Quizplus · Accepted Answer

To calculate the tentative AMT, we need to compare Yolanda's regular taxable income to her AMT base and use the higher amount.

For regular income tax purposes, Yolanda is in the 32% tax bracket, so we can assume her taxable income is somewhere between $160,725 and $204,100.

Comparing that to her AMT base of $420,000, we can see that the higher amount is her AMT base.

So, Yolanda's tentative AMT is calculated as follows:

($420,000 - $194,800) x 0.26 + $24,510 = $113,704

Therefore, the correct answer is C.

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