Investing in municipal bonds to avoid paying tax on interest earned and to earn a higher after-tax yield is an example of:

A. None of the choices are correct.

B. income shifting.

C. tax evasion.

D. conversion.

E. timing.

Penny has a regular tax liability of $12,475 and a tentative minimum tax of $11,500. Given just this information, what is her alternative minimum tax liability for the year?

A. $0

B. $12,475

C. $975

D. $11,500