Identify Which of the Following Statement Is True

question 126

Multiple Choice

Identify which of the following statement is true.

• A)The corporate alternative minimum tax rate is 35%.
• B)AMT is a permanent increase to the corporate tax liability.
• C)Small corporations whose average gross receipts for each of the three preceding years are $7.5 million or less are exempted from the AMT.
• D)The excess of tax depreciation over book depreciation increases AMTI.

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Definitions:

Capacity to Enter

Refers to the legal ability of a party to enter into a binding contract, often requiring that the individual be of a certain age and sound mind.

Legal Consequences

The outcomes or effects that result from the application or violation of laws, which can include penalties, fines, or other legal judgments.

Capacity to Contract

The legal ability of a person to enter into a binding agreement.

Consideration Given

The value (such as money, service, or goods) promised in a contract to persuade a party to agree to the contract.