Several years ago, Ferris Corporation purchased heavy machinery for $618,000. It sold the machinery this year for $500,000. Through date of sale, MACRS depreciation on the machinery was $320,000, while AMT depreciation was $198,000. Ferris has paid AMT in three of its last five taxable years and expects to do so again this year.
Identify the tax issue or issues suggested by the following situations, and state each issue in the form of a question.