O.2, 5 Renee and Sanjeev, who are married, report taxable income of $273,000. They computed positive AMT adjustments of $38,000, negative AMT adjustments of $14,000, and AMT preference items of $67,500. The couple itemizes their deductions.

a. Compute their AMTI.

b. Compute their tentative minimum tax.

LO.2, 3, 4, 5 Farr, who is single, has no dependents and does not itemize her deductions. She shows the following items relative to her current- year tax return. Bargain element from the exercise of an ISO (no restrictions apply to the stock) $ 45,000 MACRS depreciation on shopping mall building acquired five years ago 49,000 Percentage depletion in excess of propertys adjusted basis 50,000 Taxable income for regular income tax purposes 121,000 Regular tax liability 26,951

c. Determine Farrs AMT adjustments and preferences.

d. Calculate Farrs AMT (if any).