What is Ds tax preference generated by the property?
In 2014 Ted incurred a net operating loss of $200000. Ted had no A Show more Chapter 12: ACC 4301 Question 1 In 2014 Ted incurred a net operating loss of $200000. Ted had no AMT adjustments but deducted tax preferences of $30000. What is Teds ATNOLD carryover into 2015? $30000 $230000 $170000 $200000 Question 2 Black Corporation has average gross receipts of $3500000 for the three-year period prior to 2015. Blacks AMT base in 2015 is $120000. What is Blacks tentative minimum tax? $31200 $16000 $24000 $0 Question 3 Bill has an AMT base of $400000 including a net (long-term) capital gain of $30000 in 2015. What is the AMT tax rate applied to the net (long-term) capital gain? 20% 26% 28% 10% Question 4 For regular income tax purposes Andy had net investment income of $30000 before deducting investment interest. He incurred investment interest of $45000 during the year. In addition Andy had interest income on private activity bonds of $12000. What is Andys investment interest deduction for AMT purposes? $30000 $12000 $42000 $0 Question 5 Carolyns taxable income is $300000. She has tax preferences of $75000 and positive adjustments of $40000. If she is a single taxpayer what is Carolyns tentative minimum tax? $116200 $112492 $83000 $107900 Question 6 In the current year Alberto incurs mine exploration costs of $200000 that are deducted for regular income tax purposes. What is Albertos AMT adjustment next year assuming no additional mine exploration costs are incurred? $20000 negative $40000 negative $0 $200000 positive Question 7 Paul had $22000 in interest income from corporate bonds $14000 interest income from private activity bonds and $7000 from preferred stock. What is the amount of investment income Paul must report for AMT purposes? $7000 $22000 $43000 $21000 Question 8 Amber Corporation (not a small corporation) has adjusted current earnings of $400000 and the corporation has unadjusted alternative minimum taxable income of $100000. What is Amber Corporations ACE (adjusted current earnings) adjustment for the AMT? $225000 positive $375000 positive $75000 negative $300000 negative Question 9 Sara has total nonrefundable business credits of $20000 regular tax liability of $66000 and tentative AMT of $50000. How much of the nonrefundable credits can Sara claim in the current year? $4000 $16000 $20000 $0 Question 10 Verde Corporation (not a small corporation) a calendar year taxpayer has alternative minimum taxable income (before the ACE adjustment) of $500000 for 2015. If Verdes adjusted current earnings (ACE) are $1200000 what is Verde Corporations tentative minimum tax for 2015? $197000 $232000 $266500 $205000 Question 11 On nonresidential real property placed in service after December 31 1998 the AMT depreciation (ADS) is based on a life of how many years? 31.5 years 39 years 40 years 27.5 years Question 12 Carol is single and has AMTI of $140000. What is Carols 2015 exemption amount for the AMT? Calculate using the 2015 exemption amounts in this study guide. $8437 $48400 $0 $27031 Question 13 Roger a single taxpayer has taxable income of $110000. He had positive AMT adjustments of $55000 negative AMT adjustments of $10000 and tax preferences of $59500. What is Rogers AMTI? $175000 $124500 $214500 $155000 Question 14 In the current year Fern has MACRS depreciation of $30420 on a nonresidential building placed in service prior to January 1 1999. Her AMT depreciation under ADS is $23960. What is AMT depreciation adjustment? $23960 positive $6460 negative $6460 positive $30420 negative Question 15 Fifty percent of the gain on certain small business stock is excludible from gross income for regular income tax purposes. What percentage of the excluded amount is a tax preference for AMT purposes? 5 percent 7 percent 10 percent 15 percent Question 16 Carolyns taxable income is $300000. She has tax preferences of $75000 and positive adjustments of $40000. If she is a single taxpayer what is Carolyns alternative minimum taxable income? $260000 $415000 $375000 $185000 Question 17 Nora had $22000 in interest income from corporate bonds $14000 interest income from private activity bonds and $7000 from preferred stock. She incurred investment interest expense of $12000 related to the corporate bonds and $9000 related to the private activity bonds. Nora also incurred $6000 interest on a home equity loan and used the proceeds to purchase the preferred stock. What is Noras AMT adjustment for investment interest? $9000 positive $15000 positive $0 $6000 positive Question 18 Which of the following is not allowed as a deduction in computing the alternative minimum tax? Casualty losses Gambling losses (to the extent of winnings) State income taxes Charitable contributions Question 19 Bob owns a rental duplex. His basis for regular tax purposes is $93000 while the basis for AMT purposes is $95000. Bob sells the duplex for $105000 for a regular income tax gain of $12000 and an AMT gain of $10000. What is Bobs AMT adjustment for the sale? $2000 positive $2000 negative $10000 positive $10000 negative Question 20 Paul had $22000 in interest income from corporate bonds $14000 interest income from private activity bonds and $7000 from preferred stock. He incurred investment interest expense of $12000 related to the corporate bonds and $9000 related to the private activity bonds. Paul also incurred $6000 interest on a home equity loan and used the proceeds to purchase the preferred stock. What amount of investment interest can Paul use in calculating his regular tax and his AMT? $27000; $27000 $12000; $12000 $12000; $27000 $18000; $21000 Question 21 Beige Corporation (not a small corporation) a calendar year taxpayer has alternative minimum taxable income (before the ACE adjustment) of $500000 for 2015. If Beiges adjusted current earnings (ACE) are $1200000. What is Beige Corporations ACE adjustment? $525000 negative $350000 positive $525000 positive $350000 negative Question 22 Larry incurs mine exploration costs of $200000 that are deducted for regular income tax purposes. What is Larrys adjustment in computing AMTI? $0 $200000 positive $180000 positive $160000 negative Question 23 The AMT credit is available for which of the following differences between regular taxable income and AMTI? Excess percentage depletion Standard deduction Personal exemptions Circulation expenditures Question 24 Don age 45 whose AGI is $70000 incurred medical expenses of $10000 during the year. What is Dons AMT adjustment if any for these medical expenses? $0 $4750 negative $1750 negative $1750 positive Question 25 Norms taxable income in the current year is comprised of the following amounts: Adjusted gross income $45000 Medical expenses $10000 Other itemized deductions $8000 Taxable income $27000 Assuming that Norm is subject to the AMT this year what is the medical expense adjustment required in the current year? $0 $4125 positive $1125 positive $2125 negative Question 26 The alternative minimum tax ACE adjustment applies to which of the following? C corporations Individuals Partnerships The ACE adjustment applies to all taxpayers Question 27 Black Corporation (a calendar year taxpayer) provides you with the following information: Taxable income $500000 Interest on private activity bonds (issued in 2005) $60000 Excess percentage depletion $150000 Assuming Black Inc. is not a small corporation what is Blacks AMTI? $500000 $710000 $650000 $560000 Question 28 If Timothys alternative minimum tax base for 2015 is $292500 what is his tentative minimum tax liability? $78192 $81900 $58500 $76050 Question 29 D owns mineral property that qualifies for a 15 percent depletion rate. At the beginning of 2015 the basis of the property is $5000. Gross income from the property during the year was $120000. What is Ds tax preference generated by the property? $0 $13000 $18000 $5000 Question 30 Billy had intangible drilling costs (IDC) of $90000 for the current year which he elected to expense. His net oil and gas income for the same period was $70000. What is Billys tax preference for IDC? $81000 $9000 $35500 $0 Show less
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