Which of the Following Statements Is Incorrect with Respect to the Consolidated

question 40

Multiple Choice

Which of the following statements is incorrect with respect to the consolidated alternative minimum tax?

• A)The starting point for the consolidated alternative minimum taxable income computation is consolidated taxable income before the NOL deduction.
• B)The difference between the consolidated ACE amount and the consolidated preadjustment AMTI is an adjustment to consolidated taxable income in arriving at AMTI.
• C)Each corporation is permitted its own $40,000 statutory exemption.
• D)If the consolidated tentative minimum tax is smaller than the consolidated regular tax,there is no alternative minimum tax liability.

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Definitions:

Percent Equivalent

The percentage representation of a fraction or decimal.

Fraction

A fractional amount that signifies a portion of a whole, distinct from an integer.

Decimal Equivalent

A decimal number that represents the same value as a given fraction or percentage.

Percent Equivalent

The fractional amount expressed as a part of one hundred.