The Shepherd Corporation has $40,000 of taxable income, $200,000 of positive adjustments, and a $10,000 preference item. What is its alternative minimum taxable income?

Name: The Shepherd Corporation has $40,000 of taxable income, $200,000 of positive adjustments, and a $10,000 preference item. What is its alternative minimum taxable income?
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Quizplus · Accepted Answer

$40,000 + $200,000 Pos. adj. + $10,000 Pref. = $250,000; Exemp. = ($250,000 - $150,000).25 = $25,000; $40,000 - $25,000 = $15,000; $250,000 - $15,000 = $235,000

The Shepherd Corporation Has $40,000 of Taxable Income, $200,000 of Positive