Ortiz Corporation Determined Its AMTI to Be $120,000 for 2017

question 86

Multiple Choice

Ortiz Corporation determined its AMTI to be $120,000 for 2017.If the regular income tax liability is $15,000,what is the amount of the alternative minimum tax for 2017?

• A)$- 0 -
• B)$1,000
• C)$9,000
• D)$16,000
• E)$24,000

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Definitions:

Economic Hardship

A state of financial strain that is often caused by unemployment, debt, or high living expenses, affecting an individual's or family's ability to afford basic needs.

Alimony

Financial support that one spouse is legally obligated to provide to the other during or after the dissolution of a marriage.

Physical Custody

A legal term referring to the living arrangements of a child and the rights of a parent or parents to have the child live with them.

Court-ordered Support

Financial or other support mandated by a court for the benefit of a child, spouse, or former spouse following a divorce or separation.