Grebe Corporation was formed in 2000. If in 2011, it has average gross receipts of under $5 million, the company cannot be subject to the AMT.

Question

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The Alternative Minimum Tax (AMT) applies to corporations regardless of their gross receipts, but smaller corporations with average annual gross receipts of $7.5 million or less over the past three years may be exempt from AMT.

Grebe Corporation Was Formed in 2000