Tanver Corporation, a Calendar Year Corporation, Has Alternative Minimum Taxable

question 72

Multiple Choice

Tanver Corporation, a calendar year corporation, has alternative minimum taxable income of $7 million in 2015 (before adjustment for adjusted current earnings) . If Tanver's adjusted current earnings is $16 million, its tentative minimum tax for 2015 is:

• A) $310,000.
• B) $2,750,000.
• C) $6,750,000.
• D) $7,000,000.
• E) Some other amount.

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Definitions:

Net Sales

The revenue from sales after deducting returns, allowances for damaged or missing goods, and discounts.

Times Interest Earned

A metric that measures a company's ability to meet its interest payments on outstanding debt.

Interest Expense

The expense an organization faces for borrowing money over a certain duration.

Return On Assets

A financial ratio indicating how efficiently a company uses its assets to generate profit.