19. Eastern Corp., a calendar-year corporation, was formed in 2009. On January 2, 2010, it placed five-year property in service. The property was depreciated under the general MACRS system. Eastern did not elect to use the straightline method. The following information pertains to Eastern:

Eastern’s 2010 taxable income $300,000 Adjustment for the accelerated depreciation taken on 2010 five-year property 1,000 2010 tax-exempt interest from specified private activity bonds issued in 2006 5,000 What was Eastern’s 2010 alternative minimum taxable income before the adjusted current earnings (ACE) adjustment?

a. $306,000

b. $305,000

c. $304,000

d. $301,000