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:

Tax Liability

The total amount of tax owed to governmental authorities.

Withdraw

The act of removing funds from an account, or taking back an offer or statement.

Investment

The allocation of resources with the expectation of generating an income or profit.

Present Value

The value today of a sum of money or sequence of cash flows expected in the future, calculated using a designated interest rate.