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Slimtin Corporation Has $400,000 of Regular Taxable Income

question 47

Essay

Slimtin Corporation has $400,000 of regular taxable income.It has depreciation adjustments of $100,000 (MACRS depreciation in excess of 150% declining balance method),and its adjusted current earnings is $600,000.
Part A-Calculate Slimtin's AMT liability.
Part B-Slimtin has a $41,000 AMT credit carryover from last year.How much,if any,can be applied this year?


Definitions:

Individually Liable

Responsibility of a person to bear the loss or fulfill obligations from their personal assets, independently of others' liabilities.

Preincorporation Contracts

Agreements entered into on behalf of a corporation not yet legally formed, which may bind the corporation once it comes into existence.

Promoter

A person or company that finances or organizes events, especially in entertainment or sports.

Personally Liable

Being individually responsible for a debt or legal obligation, meaning personal assets can be used to satisfy the debt if necessary.

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