Sand Corporation,a calendar year taxpayer,has alternative minimum taxable income [before adjustment for adjusted current earnings (ACE)] of $900,000 for 2014.If Sand's (ACE)is $975,000,its tentative minimum tax for 2014 is:
A)$0.
B)$56,250.
C)$180,000.
D)$191,250.
E)None of these.

Question

Quizplus · Accepted Answer

Adjusted current earnings adjustment = $56,250 [75% × ($975,000 - $900,000)].Tentative minimum tax = $191,250 [($900,000 AMTI before adjustment + $56,250 adjustment)× 20%].No AMT exemption is allowed because AMTI exceeds $310,000.

Sand Corporation,a Calendar Year Taxpayer,has Alternative Minimum Taxable Income [Before