For regular income tax purposes, Yolanda, who is single, is in the 35% tax bracket. Her AMT base is $220,000. Her tentative AMT is:
A)$57,200.
B)$57,844.
C)$61,600.
D)$77,650.
E)None of the above.

Question

Quizplus · Accepted Answer

Tentative AMT is calculated by applying AMT rates of 26% to the first $194,800 of her AMT base and 28% to the remaining amount ($220,000 - $194,800 = $25,200). The calculation is as follows: 
($194,800 x 26%) + ($25,200 x 28%) = $50,648 + $7,196 = $57,844.

For Regular Income Tax Purposes, Yolanda, Who Is Single, Is