During the current year, FTP Corporation reported regular taxable income of $500,000. FTP used the following information in its tax-related computations:

·$12,000 interest from IrvineCity bonds: Bonds issued in 2015 and proceeds used to fund public schools.

·$20,000 interest from Fluor Corporation bonds.

·$8,000 interest from Mission ViejoCity: Bonds issued in 2014 and proceeds used to lure new business to the area.

·$6,000 interest from U.S. Treasury notes.

·$30,000 dividends received from General Electric Corporation (FTP owns less than 1 percent of GE stock).

·$10,000 dividends received from Hobble Inc. (FTP owns 25 percent of Hobble Inc.)

·$25,000 charitable contribution to the World Golf Foundation.

·$60,000 AMT depreciation (regular tax depreciation was $70,000).

·$50,000 ACE depreciation.

·$7,000 AMT gain on disposition of assets (regular tax gain on disposition of assets was $8,000).

·$5,000 ACE gain on disposition of assets.

a. What is FTP’s ACE adjustment for the current year? Is it positive or negative?

b. What is FTP’s alternative minimum tax base?

c. What is FTP’s alternative minimum tax liability, if any?