Which of the Following Statements Concerning the Individual Alternative Minimum

question 67

Multiple Choice

Which of the following statements concerning the individual alternative minimum tax (AMT) is true?

• A) The calculation of alternative minimum taxable income begins with taxable income for regular tax purposes.
• B) A taxpayer with no tax preference items for the year can't be liable for AMT.
• C) The standard deduction is not an AMT adjustment in calculating AMTI.
• D) The individual AMT rate is a flat 28%.

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Definitions:

Proportions

The relative relationship in size, quantity, or degree between two or more things.

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Production Function

An equation that describes the relation between inputs used in production and the output of goods or services.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.