Sage,Inc ,Has the Following Gross Receipts and Taxable Income,since Its

question 54

Essay

Sage,Inc. ,has the following gross receipts and taxable income,since its incorporation in 2010.
Gross receipts
Taxable income
2010
$4,600,000
$120,000
2011
4,300,000
190,000
2012
7,200,000
162,000
2013
9,000,000
180,000
2014
6,200,000
150,000
2015
6,500,000
160,000
2016
6,800,000
162,000
Is Sage,Inc. ,subject to the AMT in 2016?

---

Definitions:

Fixed Cost

Costs that do not change with the level of output or sales, such as rent, salaries, and loan payments.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.

Net Profit

The actual profit after working expenses not included in the calculation of gross profit have been paid.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.