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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
50.            Â
Brown Inc., a calendar year taxpayer, reported the following transactions. Brown is not a small corporation for AMT purposes.
Â
|
Taxable income Depreciation for regular income tax purposes on  realty |
$2,600,000 |
|
(placed in service in  2006) |
550,000 |
|
Excess amortization of certified pollutions control  facilities |
450,000 |
|
Tax-exempt interest on private activity bonds (issued in   2007) |
1,030,000 |
|
Percentage depletion in excess of the property’s adjusted   basis |
60,000 |
|
ACE adjustment |
0 |
a.     Calculate Brown’s regular income tax liability.
b.    Calculate Brown’s TMT.
c.     Calculate Brown’s AMT.
Â
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