Tropical Corporation was formed in 2013. For 2013 through 2015, its regular and tentative minimum tax were as follows: $$\begin{array} { c c c }
\text { Year } & \text { Regular Tax } & \text { Tentative Minimum Tax } \
2013 & \$ 400,000 & \$ 370,000 \
2014 & 300,000 & 350,000 \
2015 & 375,000 & 400,000
\end{array}$$ a. Compute Tropical's tax due for each year
b. In 2016, Tropical's regular taxable income is $2,000,000, and it has positive AMT adjustments of $500,000 and AMT preferences of $600,000. Compute Tropical's regular tax, tentative minimum tax, and tax due for 2016.

Question

Tropical Corporation was formed in 2013. For 2013 through 2015, its regular and tentative minimum tax were as follows: $$\begin{array} { c c c } 
\text { Year } & \text { Regular Tax } & \text { Tentative Minimum Tax } \
2013 & \$ 400,000 & \$ 370,000 \
2014 & 300,000 & 350,000 \
2015 & 375,000 & 400,000
\end{array}$$ a. Compute Tropical's tax due for each year
b. In 2016, Tropical's regular taxable income is $2,000,000, and it has positive AMT adjustments of $500,000 and AMT preferences of $600,000. Compute Tropical's regular tax, tentative minimum tax, and tax due for 2016.

Quizplus · Accepted Answer

The Answer of Tropical Corporation was formed in 2013. For 2013 through 2015, its regular and tentative minimum tax were as follows: $$\begin{array} { c c c } 
\text { Year } & \text { Regular Tax } & \text { Tentative Minimum Tax } \
2013 & \$ 400,000 & \$ 370,000 \
2014 & 300,000 & 350,000 \
2015 & 375,000 & 400,000
\end{array}$$ a. Compute Tropical's tax due for each year
b. In 2016, Tropical's regular taxable income is $2,000,000, and it has positive AMT adjustments of $500,000 and AMT preferences of $600,000. Compute Tropical's regular tax, tentative minimum tax, and tax due for 2016.

Tropical Corporation Was Formed in 2013 A Compute Tropical's Tax Due for Each Year B

Tropical Corporation Was Formed in 2013 A Compute Tropical's Tax Due for Each Year
B