Identify Which of the Following Statements Is False

question 66

Multiple Choice

Identify which of the following statements is false.

• A)Tax-exempt interest on certain private activity bonds may be taxed under the alternative minimum tax.
• B)Tax preference items and adjustments may either increase or decrease taxable income to obtain AMTI.
• C)Depending on the date an asset is placed in service,depreciation may be an adjustment to taxable income or a tax preference item for alternative minimum tax purposes.
• D)Different depreciation rules are used when computing taxable income and alternative minimum taxable income.