Ashly Is Able to Reduce Her Regular Income Tax Liability

question 118

Multiple Choice

Ashly is able to reduce her regular income tax liability from $47,000 to $43,500 as the result of the alternative tax on net capital gain.Ashly's tentative AMT is $51,000.

• A)Ashly's tax liability is reduced by $3,500 as the result of the alternative tax calculation on net capital gain.
• B)Ashly's AMT is increased by $3,500 as the result of the alternative tax calculation on net capital gain.
• C)Ashly's tax liability is $43,500.
• D)Ashly's tax liability is $47,000.
• E)None of the above.