Form 6251,Alternative Minimum Tax,must Be Filed in Any of the Following

question 71

Multiple Choice

Form 6251,Alternative Minimum Tax,must be filed in any of the following situations except:

• A)The taxpayer has general business tax credits that are limited by the tentative minimum tax.
• B)The AMT base exceeds the exemption amounts and an individual has AMT adjustments or tax preference items.
• C)The tentative minimum tax exceeds the regular tax.
• D)The earned income tax credit exceeds the tentative minimum tax.

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Definitions:

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is exchanged.

Financing Activities

Transactions involving raising capital or repaying funds to and from investors and creditors, as reflected in the cash flow statement.

Net Cash

The amount of cash that remains after deducting all operational, financial, and investment activities over a period.

Cash Basis

An accounting method where revenues and expenses are recorded when they are actually received or paid, not when they are incurred.