In Computing the Alternative Minimum Taxable Income,no Deduction Is Allowed

question 98

Multiple Choice

In computing the alternative minimum taxable income,no deduction is allowed for

• A)alimony.
• B)moving expenses.
• C)personal exemptions.
• D)individual retirement account contributions.

---

Definitions:

Margin Of Safety

The difference between actual sales and break-even sales, indicating the amount by which sales can drop before the business incurs a loss.

Contribution Margin Ratio

A measure of the profitability of a product, defined as the difference between the sales price and variable costs, expressed as a percentage of sales price.

Operating Income

EBIT, or earnings before interest and taxes, denotes the income a business generates from its fundamental activities.

Margin Of Safety

The difference between actual sales and break-even sales, providing a cushion against which performance can decline before a business incurs a loss.