Rust Company is a real estate construction business with average annual gross receipts of $3 million. Rust uses the completed contract method on a particular contract that requires 16 months to complete. The contract is for $500,000, with estimated costs of $300,000. At the end of 2014, $180,000 of costs had been incurred. The contract is completed in 2015, with the total cost being $295,000. Determine the amount of adjustments for AMT purposes for 2014 and 2015.
Answer to relevant QuestionsAllie, who was an accounting major in college, is the controller of a medium-size construction corporation. She prepares the corporate tax return each year. Due to reporting a home construction contract using the completed ...Maize Corporation (a calendar year corporation) reports the following information for the years listed. Compute the ACE adjustment for each year. Calculate the AMT for the following cases in 2014. The individual taxpayer reports regular taxable income of $450,000 and no tax credits. Balm, Inc., has a general business credit for 2014 of $90,000. Balm's regular income tax liability before credits is $140,000, and its tentative AMT is $132,000. a. Calculate the amount of general business credit Balm can ...A business entity has four equal owners. Its taxable income before the cost of certain fringe benefits paid to owners and other employees is $400,000. The amounts paid for these fringe benefits are reported as follows. a. ...
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