In 2017, Blake Incurs $270,000 of Mining Exploration Expenditures, and Deducts

question 69

Multiple Choice

In 2017, Blake incurs $270,000 of mining exploration expenditures, and deducts the entire amount for regular income tax purposes. Which of the following statements is correct?

• A) For AMT purposes, Blake will have a positive adjustment of $243,000 in 2017.
• B) Blake will have a negative AMT adjustment of $27,000 in 2021.
• C) Over a 10-year period, positive and negative adjustments for mining exploration expenditures will net to zero.
• D) Only a. and c. are correct.
• E) a., b., and c. are correct.

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