Alicia owns two investment properties that she acquired several years ago. Her adjusted basis in the assets is as follows.
____________________________Regular Income Tax ____________AMT
Land ........................................... $100,000 ...................... $100,000
Apartment building ........................... 450,000 ....................... 450,000
Alicia sells the land for $250,000 and the building for $800,000.
a. Calculate Alicia's recognized gain or loss on the sale of each asset for regular income tax and AMT purposes.
b. Determine the AMT adjustment on the sale of each asset.