Question
Lynn, age 45, is single and has no dependents. Her income and expenses for 2018 are reported as follows: Income Salary $233,000 Taxable interest on
Lynn, age 45, is single and has no dependents. Her income and expenses for 2018 are reported as follows:
Income
Salary $233,000
Taxable interest on corporate bonds 13,700
Business Income 64,000
Expenditures
Home office expense deduction 3,200
State Income Taxes 6,000
Real Estate Taxes 8,500
Mortgage (qualified housing) interest 9,200
Home equity loan interest 2,500
Investment Interest 15,500
Cash Contributions to various charities 2,900
The $64,000 business income is from Apex Office Supplies Company, a sole proprietorship that Lynn owns and operates. Apex claimed MACRS depreciation of $3,175 on personal property used in the business and placed in service in the current year. Lynn received interest of $30,000 on City of Pensacola private activity bonds that were issued in 2013.
Based in the information presented above, compute Lynn's AMT for 2018. PLEASE SHOW WORK.
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