LO.3 Josepis construction company uses the completed contract method. During the three-year period 20122014, Josepi recognized the
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LO.3 Josepi’s construction company uses the completed contract method. During the three-year period 2012–2014, Josepi recognized the following income on his two construction contracts:
Year Contract 1 Contract 2 2012 $700,000* $ –0–
2013 –0– –0–
2014 –0– 800,000**
* Construction completed in 2012.
** Construction completed in 2014.
If Josepi had used the percentage of completion method, he would have recognized the following income:
Year Contract 1 Contract 2 2012 $40,000 $275,000 2013 –0– 225,000 2014 –0– 300,000 Calculate the AMT adjustment for 2012, 2013, and 2014.
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Related Book For
South Western Federal Taxation 2013 Individual Income Taxes
ISBN: 9781133189558
36th Edition
Authors: William Hoffman, James E. Smith
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