In 2012, Sean Incurs $90,000 of Mining Exploration Expenditures, and Deducts

question 6

Multiple Choice

In 2012, Sean incurs $90,000 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, Sean will have a positive adjustment of $81,000 in 2012.
• B)Sean will have a negative AMT adjustment of $9,000 in 2017.
• C)Over a 10-year period, positive and negative adjustments will net to zero.
• D)Only a.and c.are correct.
• E)a., b., and c.are correct.

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Definitions:

Peanuts

A type of legume native to South America, valued for its edible seeds.

Soybeans

A species of legume native to East Asia, widely grown for its edible bean which has numerous uses, including oil and protein-rich food products.

Biological Selection

The process through which certain traits become more or less common in a population due to their effects on the survival and reproduction of their bearers.

Biological Fitness

A measure of an organism's ability to survive and reproduce in its environment, often influenced by genetic traits.