Peach Corporation (a calendar year company) recorded the following transactions. Taxable income ...................... $5,000,000 Regular tax depreciation

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Peach Corporation (a calendar year company) recorded the following transactions.

Taxable income ...................... $5,000,000

Regular tax depreciation on realty in excess of ADS

(placed in service in 1991) ..................1,700,000

Amortization of certified pollution control facilities

(in excess of ADS amortization) .................. 200,000

Tax-exempt interest on private activity bonds issued in 2006 ..... 300,000

Percentage depletion in excess of the property’s adjusted basis ..... 700,000

a. Determine Peach Corporation’s AMTI.

b. Determine the alternative minimum tax base (refer to Exhibit 17.2).

c. Determine the tentative minimum tax.

d. What is the amount of the AMT?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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South Western Federal Taxation 2015 Essentials Of Taxation Individuals And Business Entities

ISBN: 9781285438290

18th Edition

Authors: James Smith, William Raabe, David Maloney, James Young

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Question Posted: May 25, 2015 07:40 AM

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Peach Corporation (a calendar year company) recorded the following transactions. Taxable income ...................... $5,000,000 Regular tax depreciation

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a Taxable income of Peach Corporation 5000000 Adjustments Accelerated depreciation on realty in exce...View the full answer

South Western Federal Taxation 2015 Essentials Of Taxation Individuals And Business Entities

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