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 $ phased out 72,900 X, since his filing status is single. However, the exemption is at a rate of 25 cents on the dollar when AMTI exceeds $ 518,400 X. Therefore, Arthur's total AMT exemption will be $ A graduated, two-tier AMT rate schedule applies to individual taxpayers. A 26% base, and a 28% rate applies to the first $199,900 of the AMT rate applies to the AMT base in excess of $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 Feedback Check My Work b. What is the total amount of Arthur's tax liability? 80,000 35,000 625,000 $153,044