Vicki Owns and Operates a News Agency (As a Sole

question 21

Multiple Choice

Vicki owns and operates a news agency (as a sole proprietorship) . During 2012, she incurred expenses of $24,000 to increase circulation of newspapers and magazines that her agency distributes. For regular income tax purposes, she elected to expense the $24,000 in 2012. In addition, Vicki incurred $15,000 in circulation expenditures in 2013 and again elected expense treatment.What AMT adjustments will be required in 2012 and 2013 as a result of the circulation expenditures?

• A)$16,000 positive in 2012, $2,000 positive in 2013.
• B)$16,000 negative in 2012, $2,000 positive in 2013.
• C)$16,000 negative in 2012, $10,000 positive in 2013.
• D)$16,000 positive in 2012, $10,000 positive in 2013.
• E)None of the above.

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A Romance language originating from the Iberian Peninsula of Europe, widely spoken in Spain, Latin America, and parts of the United States.

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