G Corp. is not eligible for the small corporation AMT exemption. G Corp. is an accrual basis taxpayer with the following taxable income and tax liability: Gross profit from sales$3,000,000Dividends from 25% owned corporations100,000Dividends from 10% owned corporations200,000Gain on installment sale of land250,000Gross income$3,550,000Operating expenses$1,750,000Depreciation expense400,000Organizational cost amortization expense25,000DRD (80,000 + 140,000)220,000Total deductions$2,395,000Taxable income1,555,000Tax392,700Additional information:1. Tax-exempt interest = $80,000. The bonds are private activity bonds.2. Key person life insurance proceeds = 500,0003. Total gain related to installment sale made last year = 770,000. $250,000 reported this year.4. Depreciation for AMT = 325,000 and for ACE = 330,0005. Net AMT paid in past years = 100,000. Cumulative prior period positive ACE adjustment = $200,000Determine the corporation’s tax liability and carry-forward items.
https://unemployed-professor.com/wp-content/uploads/2021/03/logo2-300x60.png 0 0 Unemployed Professor https://unemployed-professor.com/wp-content/uploads/2021/03/logo2-300x60.png Unemployed Professor2022-01-24 10:06:082022-01-24 10:06:08G Corp. is not eligible for the small corporation AMT exemption. G Corp. is an accrual basis taxpaye
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