Lilly Is Single and Reports Zero Taxable Income for 2016

question 113

Essay

Lilly is single and reports zero taxable income for 2016.She has positive AMT timing adjustments of $600,000 and AMT exclusions of $200,000.
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a.Calculate Lilly's tentative minimum tax.
b.Calculate Lilly's AMT credit carryover to 2017.

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Definitions:

Disinterested Directors

Board members who do not have a personal financial interest in a corporate decision, ensuring unbiased governance.

Quorum Of The Board

The minimum number of board members that must be present at a meeting to legally conduct business.

Nonprofit Corporation

A legal entity organized and operated for a collective, public or social benefit, rather than to generate profit for owners or investors.

Business Judgment Rule

A legal principle that shields corporate executives from liability for decisions made in good faith and with the belief that they were in the best interest of the company.