In 2016, Elspeth Corporation paid both regular tax ($2,714,000) and AMT ($129,300). The director of tax forecasts

Question:

In 2016, Elspeth Corporation paid both regular tax ($2,714,000) and AMT ($129,300). The director of tax forecasts that Elspeth will be in an AMT position for 2017 and 2018. However, its tentative minimum tax in 2019 will be significantly less than its regular tax. Assuming a 6 percent discount rate, calculate the cost of the 2016 AMT in present value terms.

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...