Please someone help Fiduciary AMT Computations (LO. 1) The Perez Trust incurred

Question

Please someone help

Fiduciary AMT Computations (LO. 1)

The Perez Trust incurred the following items this year.

Do not round intermediate computations. If required, round your final answer to the nearest dollar.

Perez does not hold any credits available to reduce the AMT liability. Perez's tentative minimum tax for the year is $ .

Taxable interest income $75,000 Tax-exempt interest income, not on private activity bonds 40,000 Tax-exempt interest income, on private activity bonds issued in 1999 20,000

Explanation / Answer

While calculating AMT computation we need to inclue interest income on private actively bond.Any interest that would have been deductible if interest on specified private activity bonds had been included in income.

So the income will be $75000+20000=$95000

Interest on private activity bond $23500

Taxable Income for AMT $118500

Tax @28% $33180

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