Exercise $12-21($Algorithmic$)($LO$.4)$

Kiki incurred intangible drilling costs $($IDC$)$ of $$194,000$ during the year and deducted that amount for regular tax purposes. Her net oil and gas income for the year was $$232,800.$ Currently, Kiki has no income from geothermal wells. Kiki has calculated her current$-$year IDC preference to be $$19,400.$

Did Kiki calculate the current$-$year IDC preference amount correctly?

Enter Kiki's preference for IDC: $