36. LO.2, 3, 8 Angela, who is single, incurs circulation expenditures of $153,000 during 2013. She is in the process of deciding whether to expense the $153,000 or to capitalize it and elect to deduct it over a three-year period. Angela already knows that she will be subject to the AMT for 2013 at both the 26% and the 28% rates. Angela is in the 28%

bracket for regular income tax purposes this year (has regular taxable income of

$153,000 before considering the circulation expenses) and expects to be in the 28%

bracket in 2014 and 2015. Advise Angela on whether she should elect the three-year write-off rather than expensing the $153,000 in 2013.