After Computing All Tax Preferences and AMT Adjustments,Peter Has AMTI

question 68

Multiple Choice

After computing all tax preferences and AMT adjustments,Peter has AMTI of $210,000 in 2014.If Peter is single,what exemption amount can he claim for AMT in 2014?

• A) $0.
• B) $29,625.
• C) $52,800.
• D) $82,100.

---

Definitions:

Product Costs

The costs directly associated with the production of goods or services, including materials, labor, and manufacturing overhead.

Budgeted Overhead

Forecasted costs related to the operation of a business that do not directly correlate to the production of goods or services.

Actual Overhead

The actual costs incurred for overhead in a specific period, including expenses for indirect materials, indirect labor, and other overhead costs.

Decorator Hours

This represents the amount of time that decorators spend on providing their services, often used in project estimates or billing.