When computing a corporation's alternative minimum taxable income,its taxable income is
A)increased by tax preference items.No decreases are allowed for preferences.
B)increased by adjustments.No decreases are allowed for adjustments.
C)increased by the statutory exemption of $40,000.
D)increased by 75% of the excess of adjusted current earnings over taxable income.

Question

Quizplus · Accepted Answer

A)Preferences only increase the AMT base while adjustments can either increase or decrease the AMT base.The ACE adjustment is 75% of the difference between adjusted current earnings and preliminary AMTI and could be an increase or decrease.

When Computing a Corporation's Alternative Minimum Taxable Income,its Taxable Income