LO.6 Based upon the following facts, calculate adjusted current earnings (ACE).

Alternative minimum taxable income (AMTI) $5,120,000 Municipal bond interest 630,000 Expenses related to municipal bonds 50,000 Key employee life insurance proceeds in excess of cash surrender value 2,000,000 Organization expense amortization 100,000 Cost of goods sold 6,220,000 Advertising expenses 760,000 Loss between related parties 260,000 Life insurance premiums paid 300,000