Aloha, Inc. had the following results for its first two years of operation: Which of the following statements is true?

Question

Aloha, Inc. had the following results for its first two years of operation:  Which of the following statements is true?

Quizplus · Accepted Answer

The Schedule P shows that Aloha Inc. had an Alternative Minimum Tax (AMT) credit in 2014. Since the AMT credit exceeded the AMT liability for that year, the excess credit may be carried over to the following year. Therefore, there is an AMT credit carryover from 2014 to 2015. The Schedule P does not provide any information regarding an AMT credit carryover from 2015 to 2016 or an AMT credit carryback from 2015 to 2014.