For the current year, CCP, Inc. received the following interest income: $12,000 interest from Irvine City

Question:

For the current year, CCP, Inc. received the following interest income:
• $12,000 interest from Irvine City bonds: Bonds issued in 2014 and proceeds used to fund public schools.
• $20,000 interest from Fluor bonds.
• $8,000 interest from Mission Viejo City bonds: Bonds issued in 2015 and proceeds used to lure new business to the area.
• $6,000 interest from U.S. Treasury notes.
a. What amount of this interest income is taxable to CCP?
b. What amount of interest should CCP report as a preference item when calculating its alternative minimum tax liability?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...