In 2010, Plum Corporation has regular taxable income of $70,000 and a regular tax liability of $12,500.

Question:

In 2010, Plum Corporation has regular taxable income of $70,000 and a regular tax liability of $12,500. The corporation also has $55,000 of tax preference items. Calculate Plum Corporation’s alternative minimum tax liability. Assume Plum Corporation is not a ‘‘small corporation.’’

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