LO.2 Arthur Wesson, an unmarried individual who is age 68, has taxable income of

$160,000 in 2012. He has AMT positive adjustments of $40,000 and tax preferences of

$35,000.

a. What is Arthur’s AMT?

b. What is the total amount of Arthur’s tax liability?

c. Draft a letter to Arthur explaining why he must pay more than the regular income tax liability. Arthur’s address is 100 Colonel’s Way, Conway, SC 29526.