Brown Corporation (a calendar year taxpayer) provides you with the following information.
Taxable income.............................................................................$2,600,000
Depreciation for regular income tax purposes on realty placed in service in 2007...550,000
Excess amortization of certified pollution control facilities..............................450,000
Tax-exempt interest on private activity bonds (issued in 2013) ......................1,030,000
Percentage depletion in excess of the property's adjusted basis...........................60,000
a. Calculate Brown's regular income tax liability.
b. Calculate Brown's TMT. Assume that the corporation is not a small corporation, this is not its first year of operations, and it does not record an ACE adjustment.
c. Calculate Brown's AMT.