Which of the Following Can Produce an AMT Preference Rather

question 104

Multiple Choice

Which of the following can produce an AMT preference rather than an AMT adjustment?

• A) Interest on private activity bonds issued in 2015.
• B) Percentage depletion.
• C) Incentive stock options (ISOs).
• D) Only a. and b.e. a., b., and c.

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Definitions:

Positive Economics

A branch of economics that focuses on objective analysis and the description of how the economy functions, as opposed to normative economics that involves value judgments.

Normative Economics

An area of economics that makes assessments of economic fairness or desired economic outcomes and aims of public policy.

Consequences

The outcomes or effects resulting from a particular action or set of conditions.

Negative Relationship

A relationship between two variables, X and Y, in which a decrease in X is associated with an increase in Y and an increase in X is associated with a decrease in Y.