Should Harris Corporation accelerate $ 100,000 of gross income into 2014, its first year subject to the AMT? Harris is subject to a 14 percent cost of capital. The corporate AMT rate is a flat 20 percent, and Harris Corporation exceeds the annual AMT exemption phase-out level of income.

a.

Tax Year Actual or Projected Taxable Income

2015 ………………………………Regular Tax $ 700,000

2016 ………………………………Regular Tax $ 700,000

b.

Tax Year Actual or Projected Taxable Income

2015 ………………………………AMT $ 700,000

2016 ………………………………Regular Tax $ 700,000

c.

Tax Year Actual or Projected Taxable Income

2015 ………………………………AMT $ 700,000

2016 ………………………………AMT $ 700,000

2017 ………………………………AMT $ 700,000

2018 ………………………………AMT $ 700,000

2019 ………………………………Regular Tax $ 700,000