Gem Corporation,a calendar year taxpayer,has AMTI (before adjustment for adjusted current earnings)of $6 million for 2008.If Gem Corporation's ACE is $15 million,its tentative minimum tax for 2008 is:

Question

Quizplus · Accepted Answer

Gem's AMT of $6 million is increased by the $6.75 million ACE adjustment [($15 million - $6 million)F1F1F1S1F1F1F10 75%].The total of $12,750,000 is multiplied by the AMT tax rate of 20% to yield a tentative minimum tax of $2,550,000.No exemption is allowed as AMTI is $310,000 or more.

Gem Corporation,a Calendar Year Taxpayer,has AMTI (Before Adjustment for Adjusted