Joshua purchased business furniture and fixtures (7-year property)for $40,000 in May 2014.On July 15,2017,Joshua sold the furniture and fixtures for $30,000.During his years of ownership,he had taken $27,504 of depreciation for regular tax purposes.AMT depreciation for that period was $17,276.What is the 2017 AMT adjustment required as a result of the sale of the assets?
A)$0.
B)$7,276.
C)$10,228.
D)$17,504.

Question

Quizplus · Accepted Answer

The AMT adjustment is the difference between the regular tax depreciation and the AMT depreciation. The regular tax depreciation is $27,504, and the AMT depreciation is $17,276. The difference is $10,228, which is the AMT adjustment required.

Joshua Purchased Business Furniture and Fixtures (7-Year Property)for $40,000 in May