LO.5 Josepi’s construction company uses the completed contract method. During the three-year period 2010–2012, Josepi recognized the following income on his two construction contracts.

Year Contract 1 Contract 2 2010 $700,000* $ –0–

2011 –0– –0–

2012 –0– 800,000**

*Construction completed in 2010.

**Construction completed in 2012.

If Josepi had used the percentage of completion method, he would have recognized the following income.

Year Contract 1 Contract 2 2010 $40,000 $275,000 2011 –0– 225,000 2012 –0– 300,000 Calculate the AMT adjustment for 2010, 2011, and 2012.

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