Identify each of the following as a tax preference item (PREF), an AMT adjustment item to calculate preadjustment AMTI (ADJ), an item to adjust from preadjustment AMTI to ACE (ACE), or none of these (NONE):
a. Percentage depletion in excess of a property’s adjusted basis at the beginning of the tax year
b. MACRS depreciation deducted on a machine placed in service in the current year
c. Sec. 179 expense deducted on delivery trucks placed in service in the current year
d. Gain or loss realized on the sale of a machine placed in service four years ago
e. Tax-exempt interest earned on State of Michigan private activity bonds
f. Tax-exempt interest earned on State of Michigan general revenue bonds
g. Long-term contract for which the taxpayer uses the completed contract method