Sand Corporation, a calendar year C corporation, reports alternative minimum taxable income of $900,000 for 2017. Sand's tentative minimum tax for 2017 is:
A)$0.
B)$40,000.
C)$180,000.
D)$191,250.

Question

Quizplus · Accepted Answer

The tentative minimum tax for a corporation is calculated as 20% of the alternative minimum taxable income. Therefore, 20% of $900,000 is $180,000.

Sand Corporation, a Calendar Year C Corporation, Reports Alternative Minimum