12-35 (LO. 7) Arthur Wesson, an unmarried individual who is age 58, reports taxable income of $510,000 in 2021. His AMT base is $625,000, and his regular tax liability in 2021 is $153,044. Click here to access the exemption table. a. Arthur's initial AMT exemption amount for 2021 is $ 73,600, since his filing status is single. However, the exemption is phased out at a rate of 25 cents on the dollar when AMTI exceeds $ Arthur's total AMT exemption will be $ 523,600 . Therefore, 25,350 X A graduated, two-tier AMT rate schedule applies to individual taxpayers. A 26% of the AMT base, and a 28% rate applies to the AMT base in excess of $199,900. rate applies to the first $199,900 Compute Arthur's AMT for 2021. Arthur's taxable income (before personal exemption) 510,000 Plus: Positive AMT adjustments Plus: Tax preferences Equals: AMTI Less: Exemption Equals: AMT base Tentative AMT Regular income tax liability AMT 80,000 35,000 625,000 73,600 X $153,044 Feedback Check My Work The purpose of the AMT formula is to reconcile taxable income to AMTI. The reconciliation of taxable income to AMTI is accomplished by entering reconciling items to account for differences between regular income tax provisions and AMT provisions. These reconciling items are referred to as AMT adjustments or tax preferences. b. What is the total amount of Arthur's tax liability