Identify Which of the Following Statements Is False

question 66

Multiple Choice

Identify which of the following statements is false.

• A)Tax-exempt interest on certain private activity bonds may be taxed under the alternative minimum tax.
• B)Tax preference items and adjustments may either increase or decrease taxable income to obtain AMTI.
• C)Depending on the date an asset is placed in service,depreciation may be an adjustment to taxable income or a tax preference item for alternative minimum tax purposes.
• D)Different depreciation rules are used when computing taxable income and alternative minimum taxable income.

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Definitions:

Reasonable Expectations

The anticipation or belief regarding a particular outcome or behavior under ordinary circumstances by a reasonable person.

Condition Subsequent

A future event or circumstance that, if it occurs, may terminate a party's obligation under a contract.

Constructive Condition

An implied condition in contracts that must be met before the obligation of the other party becomes due, even if it is not explicitly stated in the contract itself.

Impracticability

A doctrine that excuses a party from performing a contract when unforeseen events make performance excessively difficult or expensive.