In each of the following scenarios should Harris Corporation accelerate $100,000 of gross income into 2017, its first year subject to the AMT? Harris is subject to a 14 percent cost of capital. The corporate AMT rate is a flat 20 percent, and Harris Corporation exceeds the annual AMT exemption phase-out level of income.

a. Tax Year Actual or Projected Taxable Income

2018....Regular Tax $700,000

2019....Regular Tax $700,000

b. Tax Year Actual or Projected Taxable Income

2018............AMT $700,000

2019....Regular Tax $700,000

c. Tax Year Actual or Projected Taxable Income

2018............AMT $700,000

2019............AMT $700,000

2020............AMT $700,000

2021............AMT $700,000

2022....Regular Tax $700,000