QUESTION 1

1. Beula, who is a head of household and age 40, provides you with the following information from her financialrecords for 2016,

   Regular income tax liability	$ 35,776
   AMT positive adjustments	33,000
   AMT preferences	25,000
   Taxable income	170,000

   Calculate her AMTI for 2016.

   a.	$0
   b.	$174,050
   c.	$228,000
   d.	$232,050
   e.	None of the above

25 points

QUESTION 2

1. Ashby, who is single and age 30, provides you with the following information from his financial records for 2016.

   Regular income tax liability	$ 47,228
   AMTI	225,000
   Taxable income	195,000

   Calculate his AMT exemption for 2016.

   a.	$0
   b.	$17,000
   c.	$25,575
   d.	$53,900

25 points

QUESTION 3

1. Which of the following statements is correct?

   If the tentativeminimum taxis $10,000 and the regular income tax liability is $12,000, the AMT is $2,000

   If the tentative minimum tax is $12,000 and the regular income tax liability is $10,000, the AMT is $12,000

   If the tentative minimum tax is $10,000 and the regular income tax liability is $12,000, the AMT is a negative $2,000

   If the tentative minimum tax is $12,000, and the regular income tax liability is $10,000, the AMT is $2,000

25 points

QUESTION 4

1. For regular income tax purposes, Yolanda, who is single, is in the 35% tax bracket.Her AMT base is $220,000. Her tentative AMT is

   $57,200

   $57,874

   $61,600

   $77,650

   None of the above