Provita Fish feed has a regular taxable income of $120000 in December 31, 2020. The company had $1300 tax-exempt interest on certain "private activity bonds" and $1200 intangible drilling cost on that year. The AMT adjustment apart from the Adjusted Current Earning (ACE) is ($5000) and Provita Fish feed's ACE for its current tax year is $110000. On the other hand, Provita had tax losses equal to $150,000, of which $25,000 were attributable to tax preference items. As Provita is a corporation, a regular corporate AMT exemption is required for Provita. Moreover, Provita had Foreign and Investment Tax Credits of $1600 on 2020. If the regular tax liability of Provita is $11500, what was the AMT of Provita for 2020?
Provita Fish feed has a regular taxable income of $120000 in December 31, 2020. The company had $1300 tax-exempt interest on certain "private activity bonds" and $1200 intangible drilling cost on that year. The AMT adjustment apart from the Adjusted Current Earning (ACE) is ($5000) and Provita Fish feed's ACE for its current tax year is $110000. On the other hand, Provita had tax losses equal to $150,000, of which $25,000 were attributable to tax preference items. As Provita is a corporation, a regular corporate AMT exemption is required for Provita. Moreover, Provita had Foreign and Investment Tax Credits of $1600 on 2020. If the regular tax liability of Provita is $11500, what was the AMT of Provita for 2020?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 3RE: In the current year, Madison Corporation had 50,000 of taxable income at a tax rate of 25%. During...
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Provita Fish feed has a regular taxable income of $120000 in December 31, 2020. The company had $1300 tax-exempt interest on certain "private activity bonds" and $1200 intangible drilling cost on that year. The AMT adjustment apart from the Adjusted Current Earning (ACE) is ($5000) and Provita Fish feed's ACE for its current tax year is $110000. On the other hand, Provita had tax losses equal to $150,000, of which $25,000 were attributable to tax preference items. As Provita is a corporation, a regular corporate AMT exemption is required for Provita. Moreover, Provita had Foreign and Investment Tax Credits of $1600 on 2020. If the regular tax liability of Provita is $11500, what was the AMT of Provita for 2020?
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