1. Alcott invested $20,000 for a 25% interest in a partnership (not a passive activity) on January 1, 2015 The partnership borrowed $100,000 (with full recourse to the partners) on January 15, 2015, to cover short-term cash flow requirements. During the year, the partnership generated a$60,000 loss. By December 31, 2015, the partnership had paid off $20,000 of the loan. What is Alcott's at-risk amount on January 1, 2016?

a.$20,000.

b.$25,000.

c.$40,000.

d.$45,000.

2. Jacob is single with no dependents. During 2015, he has $48,000 of taxable income. He also has $28,000 of positive AMT adjustments and $12,000 of tax preferences. Jacob does not itemize his deductions but takes the standard deduction. Calculate his AMTI.

a. $88,000.

b. $91,950.

c. $94,300.

d. $98,300.

3.Paul reported the following itemized deductions on his 2015 tax return. His AGI for 2015 was $65,000. The mortgage interest is all qualified mortgage interest to purchase his personal residence. For AMT, compute his total adjustment for itemized deductions.

Medical expenses (after the 10.0% of AGI floor)............................$6,000

State income taxes...............................................................................3,600

Home mortgage interest...................................................................11,500

Charitable contributions......................................................................3,200

Miscellaneous itemized deductions (after the 2% of AGI floor)......1,800

a. $1,800.

b. $3,600.

c. $5,400.

d. $20,100.

4. After computing all tax preferences and AMT adjustments, Phillip and his wife Carmin have AMTI of $210,000. If Phillip and Carmin file a joint tax return, what exemption amount can they claim for AMT for 2015?

a. $ 0.

b.$53,600..

c.$70,625..

d.$83,400.