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

question 2

Multiple Choice

Sage Corporation, a calendar year corporation, has alternative minimum taxable income (before any exemption) of $1,200,000 for 2009.The company is not a small corporation.If the regular corporate tax is $225,000, Sage's alternative minimum tax for 2009 is

• A)$7,000.
• B)$15,000.
• C)$232,000.
• D)$240,000.
• E)None of the above.

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Definitions:

Apothecary Equivalent

A term referring to the system of weight and volume measurement used historically in pharmacies and the science of pharmacy.

Fluid Ounce

A unit of volume typically used in measuring liquids, equivalent to approximately 28.4 ml in the British imperial system and 29.6 ml in the US system.

Thyroid

A gland in the neck that produces hormones regulating growth and development through the rate of metabolism.

Practitioner

A professional engaged in the practice of a particular occupation or profession, often within the healthcare industry.