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Kay had percentage depletion of $82,000 for the current year for regular Income tax purposes. Cost depletion was $55,000. Her basis in the property was

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Kay had percentage depletion of $82,000 for the current year for regular Income tax purposes. Cost depletion was $55,000. Her basis in the property was $70.000 at the beginning of the current year. Kay must treat the percentage depletion deducted in excess of cost depletion or $27000, as a tax preference in computing AMTI. Select one True False

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