Which of the following statements is correct?
A)If the tentative minimum tax is $10,000 and the regular income tax liability is $12,000,the AMT is $2,000.
B)If the tentative minimum tax is $12,000 and the regular income tax liability is $10,000,the AMT is $12,000.
C)If the tentative minimum tax is $10,000 and the regular income tax liability is $12,000,the AMT is a negative $2,000.
D)If the tentative minimum tax is $12,000,and the regular income tax liability is $10,000,the AMT is $2,000.
E)None of the above.

Question

Quizplus · Accepted Answer

The AMT (Alternative Minimum Tax) is the difference between the tentative minimum tax and the regular income tax liability. So if the tentative minimum tax is $12,000 and the regular income tax liability is $10,000, the AMT would be $2,000. Therefore, option D is correct.

Which of the Following Statements Is Correct