Ford Corporation, a calendar year corporation, has alternative minimum taxable income (before any exemption) of $1.28 million for 2016. The company is not a small corporation. If the regular corporate tax is $209,000, Ford's alternative minimum tax for 2016 is:

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Quizplus · Accepted Answer

The alternative minimum tax (AMT) is calculated as 20% of the alternative minimum taxable income (AMTI) for corporations. Therefore, 20% of $1.28 million is $256,000. The AMT is the excess of the tentative minimum tax over the regular tax. Since the regular tax is $209,000, the AMT is $256,000 - $209,000 = $47,000.

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