Which of the Following Items Are Tax Preference Items for Purposes

question 8

Multiple Choice

Which of the following items are tax preference items for purposes of arriving at alternative minimum taxable income?

• A)excess intangible drilling costs on oil and gas properties
• B)interest income earned on federal obligations
• C)all depreciation claimed on pre-1987 real property acquisitions
• D)excess of net long-term capital gains over short-term capital losses

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Definitions:

Interest Rate

The percentage of the principal charged by a lender for the use of its money or the rate at which interest is paid by a borrower for the use of money.

Consumes

The action of using up a good or service, typically resulting in a decrease in available quantity.

Consumption

The use of goods and services by households. It is an important component of GDP and a direct indicator of consumer spending behavior.

Income

Earnings received by a person or entity, typically through work, investments, or business ventures.