In 2010,Ray incurs $60,000 of mining exploration expenditures,and deducts the entire amount for regular income tax purposes.Which of the following statements is incorrect?
A)For AMT purposes,Ray will have a positive adjustment of $54,000 in 2010.
B)Ray will have a negative AMT adjustment of $6,000 in 2015.
C)Over a 10-year period,positive and negative adjustments will net to zero.
D)The AMT adjustment for mining exploration expenditures cannot be avoided if the taxpayer elects to write the expenditures off over a 10-year period.
E)All of the above are correct.

Question

Quizplus · Accepted Answer

The AMT adjustment for mining exploration expenditures can be avoided if the taxpayer elects to write the expenditures off over a 10-year period, making statement D incorrect.

In 2010,Ray Incurs $60,000 of Mining Exploration Expenditures,and Deducts the Entire