Identify which of the following statements is false.
A) Adjusted current earnings (ACE) is the same as E&P.
B) A corporation's positive adjusted current earnings (ACE) adjustment equals 75% of the excess of its ACE over its preadjustment AMTI (AMTI before this adjustment and the alternative tax NOL deduction) .
C) A corporation's negative adjusted current earnings (ACE) adjustment equals 75% of the excess of its preadjustment AMTI (AMTI before this adjustment and the alternative tax NOL deduction) over its ACE,but may not exceed the cumulative "net" ACE adjustment amounts from all post-1989 tax years.
D) The ACE adjustment is not required of S corporations.
Correct Answer:
Verified
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