Exercise $12-19($Algorithmic$)($Lo$.3)$

Althea's business incurs research and experimental expenditures of $$24,500$ in $2023.$ For regular tax purposes, the costs are

amortized over five years, beginning at the midpoint of the year. The business incurs no additional research and experimental costs in

a$.$ Assuming that Althea is a material participant in the business, what are her AMT adjustments for research and experimental

expenditures in $2023$ and $2024?$

$2023$: $

$2024$: $

b$.$ How would your answer to part $($a$)$ change if Althea did not materially participate in the business?

There is

$2024,$ a positive

AMT amortization.

$$ in the amortization amounts for $2023$; thus,

AMT adjustment of $

is required for the excess of the regular tax amortization over the

is required for the excess of the regular tax amortization over the

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$$ Check My Work

Partially correct