When Computing a Corporation's Alternative Minimum Taxable Income,its Taxable Income

question 75

Multiple Choice

When computing a corporation's alternative minimum taxable income,its taxable income is

• A)only increased (never decreased)by tax preference items.
• B)only increased (never decreased)by adjustments.
• C)increased by the statutory exemption of $40,000.
• D)increased by 75% of the excess of adjusted current earnings over taxable income.

---

Definitions:

City Services

Public services provided by a city or town to its residents, such as water supply, sewage, trash collection, and emergency services.

Mill Rate

The amount of tax payable per dollar of the assessed value of a property, usually expressed in mills per dollar.

Graduated Commission

A commission structure where the rate of commission increases with the amount of sales or other measurable achievements.

Sales Totalling

The process of adding up all sales transactions within a given period to determine a total revenue amount.