Aloha, Inc. had the following results for its first two years of operation: $$\begin{array} { l r r }
& 2015 & 2016 \
\text { Regular tax liability } & \$ 230,000 & \$ 331,200 \
\text { Tentative minimum tax } & \$ 250,000 & \$ 258,000
\end{array}$$ Which of the following statements is true?

Question

Aloha, Inc. had the following results for its first two years of operation: $$\begin{array} { l r r } 
& 2015 & 2016 \
\text { Regular tax liability } & \$ 230,000 & \$ 331,200 \
\text { Tentative minimum tax } & \$ 250,000 & \$ 258,000
\end{array}$$ Which of the following statements is true?

Quizplus · Accepted Answer

The tentative minimum tax is higher than the regular tax liability in both years, indicating that Aloha, Inc. is subject to alternative minimum tax (AMT). The AMT credit is created when the regular tax liability exceeds the tentative minimum tax. Therefore, there is an AMT credit for both years. Since the regular tax liability exceeds the tentative minimum tax in 2016, the AMT credit from that year can be carried forward to offset future regular tax liabilities. There is no information given to suggest an AMT credit carryover from 2015 to 2016 or an AMT credit carryback from 2016 to 2015.

Aloha, Inc Which of the Following Statements Is True? A) There Is

Aloha, Inc Which of the Following Statements Is True?
A) There Is