Wallace Owns a Construction Company That Builds Both Commercial and Residential

question 75

Multiple Choice

Wallace owns a construction company that builds both commercial and residential buildings.He contracts to build a residential building for $800,000, and for which he is eligible to use the completed contract method of accounting.In the current year for regular income tax purposes, Wallace does not recognize any gross income on the contract.Under the percentage of completion method, the income recognized under the contract would have been
$60,000.Wallace's AMT effect is:

• A)$0.
• B)$60,000 negative adjustment.
• C)$60,000 positive adjustment.
• D)$800,000 positive adjustment.

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Definitions:

Free Women

Historically, refers to women who were not enslaved or bound by societal constraints, and currently can refer to women advocating for and exercising their autonomy and rights.

LGBT Families

consist of family units that include members who identify as lesbian, gay, bisexual, or transgender, focusing on their relationships, parenting, and societal challenges.

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Same-sex Parents

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