Flywest Airlines, Inc. has regular taxable income of $190 million. It also has $10 million of AMT preference items, a $5 million unfavorable depreciation adjustment, and a $2 million favorable ACE adjustment. What is Flywest's alternative minimum tax income (AMTI)?

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Quizplus · Accepted Answer

AMTI is calculated by adding back AMT preference items and adjustments to regular taxable income: $190M + $10M (preference) + $5M (unfavorable adjustment) - $2M (favorable adjustment) = $203M.