Question
Provita Fish feed has a regular taxable income of $120000 on December 31, 2020. The company had $1300 tax-exempt interest on certain private activity bonds
Provita Fish feed has a regular taxable income of $120000 on December 31, 2020. The company had $1300 tax-exempt interest on certain "private activity bonds" and $1200 intangible drilling cost on that year. The AMT adjustment apart from the Adjusted Current Earnings (ACE) is ($5000) and Provita Fish feed's ACE for its current tax year is $110000. On the other hand, Provita had tax losses equal to $150,000, of which $25,000 were attributable to tax preference items.
As Provita is a corporation, a regular corporate AMT exemption is required for Provita. Moreover, Provita had Foreign and Investment Tax Credits of $1600 in 2020. If the regular tax liability of Provita is $11500, what was the AMT of Provita for 2020?
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Federal Taxation 2016 Comprehensive
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
29th Edition
134104374, 978-0134104379
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