Flywest Airlines, Inc. has regular taxable income of $190 million. It also has $10 million of AMT preference items, a $5 million unfavorable depreciation adjustment, and a $2 million favorable ACE adjustment. What is Flywest's alternative minimum taxable income (AMTI)?

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Quizplus · Accepted Answer

Preference items and unfavorable adjustments increase AMTI. Favorable adjustments reduce AMTI. $203 million = $190 + $10 + $5 - $2 million.