Question: Should Harris Corporation accelerate 100 000 of gross income into

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

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  • CreatedOctober 30, 2015
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