For 2015, Apple Corporation (a calendar year integrated oil company) had the following transactions: Taxable income

Question:

For 2015, Apple Corporation (a calendar year integrated oil company) had the following transactions:

Taxable income …………………………………………………… $3,600,000

Regular tax depreciation on realty in excess of ADS (placed in

service in 1989) …………………………………………………… 1,530,000

Excess intangible drilling costs …………………………………… 450,000

Percentage depletion in excess of the property’s adjusted basis ….. 630,000

Assume no ACE adjustment.

a. Determine Apple Corporation’s AMTI for 2015.

b. Determine the tentative minimum tax base (refer to Exhibit 3.4).

c. Determine the tentative minimum tax.

d. What is the amount of any AMT?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...