When Computing a Corporation's Alternative Minimum Taxable Income,its Taxable Income

question 119

Multiple Choice

When computing a corporation's alternative minimum taxable income,its taxable income is

• A)increased by tax preference items.No decreases are allowed for preferences.
• B)increased by adjustments.No decreases are allowed for adjustments.
• C)increased by the statutory exemption of $40,000.
• D)increased by 75% of the excess of adjusted current earnings over taxable income.

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Definitions:

Legal Claim

A formal assertion by a party seeking judicial relief due to another party's action or failure to act in accordance with the law.

Promisor

An individual or entity who makes a promise or agreement to perform a specified act or service for a promisee.

Moral Obligation

A responsibility or duty which is ethically binding but not legally enforceable.

Consideration

In contract law, consideration refers to something of value that is exchanged between parties entering into a contract, often seen as the reason or incentive for a party to enter into an agreement.