The Purpose of the Alternative Minimum Tax (ATM)is to

question 103

Multiple Choice

The purpose of the alternative minimum tax (ATM) is to

• A)eliminate the marriage penalty for married couples.
• B)eliminate the tax penalty on investment income.
• C)ensure that even minor estates are liable for death taxes.
• D)ensure that households exceeding certain income limits pay at least some tax.

---

Definitions:

Rate of Return

The increase or decrease in value of an investment for a set duration, shown as a percentage of the original investment amount.

Present Value Factors

The numerical factors used in calculating the present value of future cash flows, based on a specific discount rate and time period.

Sunk Costs

Costs that have been incurred in the past, cannot be recouped, and are not relevant to future decisions.

Capital Investment Analysis

A financial analysis method used to evaluate the potential profits and risks of investment projects.