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.

---

Definitions:

Processing Payroll

The administrative task of calculating and distributing wages, as well as filing the necessary taxes.

FUTA

The Federal Unemployment Tax Act, which imposes a payroll tax on businesses to fund state workforce agencies.

Tax Form 940

A federal tax form in the United States used by employers to report annual Federal Unemployment Tax Act (FUTA) tax.

Purchase Order

A document issued by a buyer to a seller, detailing types, quantities, and agreed prices for products or services.