Amber, Inc

question 63

Multiple Choice

Amber, Inc., has taxable income of $212,000. In addition, Amber accumulates the following information which may affect its AMT. ∙
​
Depreciation on buildings placed in service in the early 1990s was $52,000. ADS would have been $41,000.
∙
​
​
The president of Amber exercised stock options on Amber stock. She paid $30,000 for the stock, which had a fair market value at exercise date of $49,000. At the end of the year, the stock was worth $54,000.
∙
​
Amber deducted percentage depletion of $65,000. The adjusted basis of the natural resource at the beginning of the year was $39,000.
∙
​
Amber contributed CSX stock worth $20,000 to the Red Cross. Amber purchased the stock four months ago for $19,000.
What is Amber's AMTI?

• A)$212,000.
• B)$233,000.
• C)$238,000.
• D)$249,000.
• E)None of the above

---

Definitions:

BBB

A bond credit rating given to a medium credit quality debt instrument, indicating moderate risk.

Primary Market Transaction

Deals with the issuance of new securities directly from the issuer to investors.

Secondary Market Transaction

The buying and selling of previously issued securities, such as stocks and bonds, between investors, rather than directly from issuing companies.

Bond Issue

The process of issuing new bonds by a corporation or government to raise capital, involving the creation of new debt securities to be sold to investors.