Mauve,Inc. ,has the following for 2013,2014,and 2015 and no prior ACE adjustments. 2013 2014 2015 Pre-adjusted AMTI $12,000 $15,000 $8,000 Adjusted current earnings 10,000 17,000 5,000 What is the ACE adjustment for each of the three years? 2013 2014 2015
A)$0 $1,500 ($1,500)
B)($2,000) $2,000 ($3,000)
C)$2,000 ($2,000) $3,000
D)($1,500) $1,500 $2,250
E)$1,500 ($1,500) ($2,250)

Question

Mauve,Inc. ,has the following for 2013,2014,and 2015 and no prior ACE adjustments. 2013 2014 2015 Pre-adjusted AMTI $12,000 $15,000 $8,000 Adjusted current earnings 10,000 17,000 5,000 ​ What is the ACE adjustment for each of the three years? ​ 2013 2014 2015
A)$0 $1,500 ($1,500)
B)($2,000) $2,000 ($3,000)
C)$2,000 ($2,000) $3,000
D)($1,500) $1,500 $2,250
E)$1,500 ($1,500) ($2,250)

Quizplus · Accepted Answer

The ACE adjustment is the difference between pre-adjusted AMTI and adjusted current earnings. For 2013, the ACE adjustment is $12,000 - $10,000 = $2,000. For 2014, the ACE adjustment is $15,000 - $17,000 = ($2,000). For 2015, the ACE adjustment is $8,000 - $5,000 = $3,000.

Mauve,Inc ,Has the Following for 2013,2014,and 2015 and No Prior