Tanver Corporation, a calendar year corporation, has alternative minimum taxable income of $7 million in 2011 (before adjustment for adjusted current earnings). If Tanver's adjusted current earnings is $16 million, its tentative minimum tax for 2011 is:

Question

Quizplus · Accepted Answer

To calculate the tentative minimum tax, we need to take the greater of 25% of alternative minimum taxable income ($1,750,000) or 20% of adjusted current earnings ($3,200,000). Therefore, the tentative minimum tax for Tanver Corporation is $3,200,000.

Tanver Corporation, a Calendar Year Corporation, Has Alternative Minimum Taxable