Problem $12-43($LO$.4)$

Amos incurred and expensed intangible drilling costs $($IDC$)$ of $$70,000.$ His net oil and gas

income was $$60,000.$

a$.$ What is the amount of the IDC deduction for regular tax purposes?

$

b$.$ For AMT purposes, any excess IDC for the year that is treated as a preference is

by

of net oil and gas income.

What is the amount of Amos's preference for IDC?

$