Identify Which of the Following Statements Is False

question 53

Multiple Choice

Identify which of the following statements is false.

• A)The alternative minimum tax is the excess of the tentative minimum tax amount over the regular tax amount.
• B)All corporations with gross receipts of less than $10 million are exempt from the AMT.
• C)If the firm does not qualify for Small C corporation status,the C corporation statutory exemption amount for alternative minimum tax purposes is phased out when alternative minimum taxable income reaches $310,000.
• D)The purpose of the AMT is to ensure that every taxpayer with substantial economic income pays a minimum tax.

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Definitions:

Installation Fee

A charge for setting up or installing a product, service, or system.

Gross Domestic Product

The total monetary value of all goods and services produced by a country's economy over a specified period.

IBM Stock

Shares of ownership in the International Business Machines Corporation, a multinational technology and consulting company.

Garage Sale

A sale of used household or personal items held outdoors or in a garage, typically by the household residents to dispose of unwanted items.