Clay Company uses the completed contract method on a contract that requires 14 months to complete. The

Question:

Clay Company uses the completed contract method on a contract that requires 14 months to complete. The contract is for $750,000, and has estimated costs of $425,000. At the end of 2021, $210,000 of the costs had been incurred. The contract is completed on schedule; however, total costs equal $435,000. What is the amount of AMT adjustments for 2021 and 2022?

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