Brown Corporation (a calendar year taxpayer) provides you with the following information.
Taxable income ..........................................................................................................................................$2,600,000
Depreciation for regular income tax purposes on realty placed in service in 2008 ..............................550,000
Excess amortization of certified pollution control facilities ......................................................................450,000
Tax-exempt interest on private activity bonds (issued in 2013) ............................................................1,030,000
Percentage depletion in excess of the property’s adjusted basis ..............................................................60,000
a. Calculate Brown’s regular income tax liability.
b. Calculate Brown’s TMT. Assume that the corporation is not a small corporation, this is not its first year of operations, and it does not record an ACE adjustment.
c. Calculate Brown’s AMT.