Kiki incurred intangible drilling costs (IDC) of $189,600 during the year and deducted that amount for regular tax purposes. Her net oil and gas income for the year was $227,520. Currently, Kiki has no income from geothermal wells. Kiki has calculated her current-year IDC preference to be $18,960. Did Kiki calculate the current-year IDC preference amount correctly?___________. Enter Kiki's preference for IDC: $__________.
Kiki incurred intangible drilling costs (IDC) of $189,600 during the year and deducted that amount for regular tax purposes. Her net oil and gas income for the year was $227,520. Currently, Kiki has no income from geothermal wells. Kiki has calculated her current-year IDC preference to be $18,960. Did Kiki calculate the current-year IDC preference amount correctly?___________. Enter Kiki's preference for IDC: $__________.
Chapter12: Alternative Minimum Tax
Section: Chapter Questions
Problem 23CE
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Question
Kiki incurred intangible drilling costs (IDC) of $189,600 during the year and deducted that amount for regular tax purposes. Her net oil and gas income for the year was $227,520. Currently, Kiki has no income from geothermal wells. Kiki has calculated her current-year IDC preference to be $18,960.
Did Kiki calculate the current-year IDC preference amount correctly?___________.
Enter Kiki's preference for IDC: $__________.
Transcribed Image Text:Kiki incurred intangible drilling costs (IDC) of $189,600 during the year and deducted that amount for regular tax purposes. Her net oil and
gas income for the year was $227,520. Currently, Kiki has no income from geothermal wells. Kiki has calculated her current-year IDC
preference to be $18,960.
Did Kiki calculate the current-year IDC preference amount correctly?
Enter Kiki's preference for IDC: $
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