Assume JJ Inc. must pay the AMT for the current year. Near the end of the year,

Question:

Assume JJ Inc. must pay the AMT for the current year. Near the end of the year, JJ is considering making a charitable contribution of $20,000. What is its after-tax cost of the contribution under each of the following alternative scenarios?
a. JJ's AMTI before the transaction is $50,000.
b. JJ's AMTI before the transaction is $160,000.
c. JJ's AMTI before the transaction is $200,000.
d. JJ's AMTI before the transaction is $1,000,000.