Certain Adjustments Must Be Made to Alternative Minimum Taxable Income

question 83

Multiple Choice

Certain adjustments must be made to alternative minimum taxable income (AMTI) to arrive at adjusted current earnings (ACE) .Which one of the following adjustments increases AMTI to arrive at ACE?

• A)federal income taxes paid
• B)the 80% dividends-received deduction
• C)gain realized on the installment sale of noninventory property
• D)excess of capital losses over capital gains

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Definitions:

Short-Run Average Total Cost

Short-run average total cost is the total cost of production (fixed and variable costs) divided by the total output produced, calculated when at least one factor of production is fixed.

Economies

The large set of interrelated production and consumption activities that aid in determining how scarce resources are allocated.

Diseconomies

Circumstances where increasing the scale of production leads to higher per-unit costs, often due to inefficiencies gained at larger scales.

Average Total Costs

The average cost per unit is calculated by dividing the entire production cost by the quantity of units produced.