QUESTION 1

Beula, who is a head of household and age 40, provides you with the following information from her financial records 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

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

Which of the following statements is correct?

		If the tentative minimum tax is $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

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