Questions from General Taxation

Q: Based on the following facts, calculate adjusted current earnings (ACE

Based on the following facts, calculate adjusted current earnings (ACE). Alternative minimum taxable income (AMTI before ACE adjustment) ……………. $5,120,000 Municipal bond interest ……………………………………………………...

Q: Ellie and Linda are equal owners in Otter Enterprises, a calendar

Ellie and Linda are equal owners in Otter Enterprises, a calendar year business. During the current year, Otter Enterprises has $320,000 of gross income and $210,000 of operating expenses. In addition...

Q: Purple Corporation, a calendar year taxpayer, began operations in 2013

Purple Corporation, a calendar year taxpayer, began operations in 2013. It reported the following amounts for its first four tax years. Calculate Purple’s positive and negative ACE a...

Q: In each of the following independent situations, determine the tentative mini

In each of the following independent situations, determine the tentative mini- mum tax. Assume that the company is not in small corporation status.

Q: Peach Corporation (a calendar year company) recorded the following trans

Peach Corporation (a calendar year company) recorded the following trans- actions. Taxable income ……………………………………………………………………………………………. $5,000,000 Regular tax depreciation on realty in excess of ADS (...

Q: Included in Alice’s regular taxable income and in her AMT base is

Included in Alice’s regular taxable income and in her AMT base is a $300,000 capital gain on the sale of stock she owned for three years. Alice is in the 35% tax bracket for regular income tax purpose...

Q: Calculate the AMT for the following cases in 2015. The individual

Calculate the AMT for the following cases in 2015. The individual taxpayer reports regular taxable income of $450,000 and no tax credits.

Q: Greiner, Inc., a calendar year S corporation, holds no

Greiner, Inc., a calendar year S corporation, holds no AEP. During the year, Chad, an individual shareholder, receives a $30,000 cash distribution from Greiner. Prior to the distribution, Chad’s basis...

Q: Buford sells an apartment building for $720,000. His

Buford sells an apartment building for $720,000. His adjusted basis is $500,000 for regular income tax purposes and $550,000 for AMT purposes. Calculate Buford’s: a. Gain for regular income...

Q: Determine whether each of the following transactions is a preference (P

Determine whether each of the following transactions is a preference (P) is an adjustment (A), or is not applicable (NA) for purposes of the corporate AMT. a. Depletion in excess of basis...