If all long-term contracts are accounted for under the percentage of completion method for regular income tax purposes,no adjustment is required for AMT purposes.

Question

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Under the percentage of completion method, income and expenses are recognized as a percentage of the project's completion. This method is used for long-term contracts that are expected to take more than one year to complete. For AMT purposes, no adjustment is required because the percentage of completion method is already used for regular income tax purposes.

If All Long-Term Contracts Are Accounted for Under the Percentage