After Computing All Tax Preferences and AMT Adjustments,Adam and His

question 7

Multiple Choice

After computing all tax preferences and AMT adjustments,Adam and his wife Cindy have AMTI of $290,000.If Adam and Cindy file a joint tax return,what exemption amount can they claim for AMT for 2014?

• A) $0.
• B) $48,725.
• C) $52,800.
• D) $82,100.

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Definitions:

Board of Directors

A group of individuals elected by the shareholders of a corporation to oversee the management and make major decisions affecting the company's policy and strategy.

MBCA

The Model Business Corporation Act, a set of statutory provisions designed for the incorporation and operation of a business corporation.

Incorporator

The individual or entity that files the articles of incorporation, thus legally forming a corporation.

Preincorporation Contracts

Agreements entered into on behalf of a corporation not yet formed, which the corporation may later ratify or reject.