Mauve, Inc., has the following for 2013, 2014, and 2015 and no prior ACE adjustm
ID: 2474614 • Letter: M
Question
Mauve, Inc., has the following for 2013, 2014, and 2015 and no prior ACE adjustments.
2013 2014 2015
Pre-adjusted AMTI $12,000 $15,000 $8,000
Adjusted current earnings 10,000 17,000 5,000
What is the ACE adjustment for each of the three years? 2013 2014 2015
a. ($1,500) $1,500 $2,250
b. $2,000 ($2,000) $3,000
c. $0 $1,500 ($1,500)
d. ($2,000) $2,000 ($3,000)
e. $1,500 ($1,500) ($2,250)
Explanation / Answer
Ans;
c. $0 $1,500 ($1,500)
The ACE adjustment for each of the three years $0 $1,500 ($1,500)