1. Dale owns and operates Dales Emporium as a sole proprietorship. On January 30, 2006, Dales Emporium acquired a warehouse for $100,000. In 2020, for regular tax purposes, the MACRS depreciation deduction was calculated using a 2.564% rate. Determine the AMT adjustment for depreciation and indicate whether it is positive or negative.

	a.	A $64 negative adjustment.
	b.	A $64 positive adjustment.
	c.	No adjustment is required because Dales Emporium used the Alternative Depreciation System (ADS) to compute depreciation on the property for AMT purposes.
	d.	No adjustment is required because Dales Emporium used MACRS to compute the depreciation of the property for regular income tax purposes.

I chose B. It was wrong but I would like to know what the correct answer was and why.