In 2014, Elspeth Corporation paid both regular tax ($2,714,000) and AMT ($129,300). The director of tax forecasts that Elspeth will be in an AMT position for 2015 and 2016. However, its tentative minimum tax in 2017 will be significantly less than its regular tax. Assuming a 6 percent discount rate, calculate the cost of the 2014 AMT in present value terms.
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