LO.7 Included in Alice's regular taxable income and in her AMT base is a $300,000 capital gain

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LO.7 Included in Alice's regular taxable income and in her AMT base is a $300,000 capital gain on the sale of stock she owned for three years. Alice is in the 20% tax bracket for net capital gains for regular income tax purposes.

a. What rate should Alice use in calculating her tentative AMT?

b. What is Alice's AMT adjustment?

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