Choose the correct statement: A. The corporate alternative minimum tax applies t
ID: 2485943 • Letter: C
Question
Choose the correct statement:
A. The corporate alternative minimum tax applies to all corporations including S corporations.
B. The alternative minimum tax is imposed at 26 percent on the alternative minimum tax base up to $150,000 and 28 percent on the AMT base that is greater than $150,000.
C. The exemption amount is phased out at a rate of $1.00 for every $1.00 by which the corporation's alternative minimum taxable base exceeds $210,000.
D. The alternative minimum tax base is equal to the corporation's regular taxable income increased or decreased for certain adjustments, increased by tax preference items, and decreased by the exemption amount.
Explanation / Answer
Answer: Option D is the correct answer.
Option D:The alternative minimum tax base is equal to the corporation's regular taxable income increased or decreased for certain adjustments, increased by tax preference items, and decreased by the exemption amount.
The following are the wrong options, the correct statements to the above A,B and C option are:
A:The corporate alternative minimum tax does not applies to all corporations including S corporations.
B:The alternative minimum tax is imposed at 26 percent on the alternative minimum tax base up to $179,500 and 28 percent on the AMT base that is greater than $179,500.
C:The exemption amount is phased out at a rate of $1.00 for every $1.00 by which the corporation's alternative minimum taxable base exceeds $310,000.