Factors That Can Cause the Adjusted Basis for AMT Purposes

question 69

Multiple Choice

Factors that can cause the adjusted basis for AMT purposes to be different from the adjusted basis for regular income tax purposes include the following:

• A)A different amount of depreciation (cost recovery) has been deducted for AMT purposes and regular income tax purposes.
• B)The spread on an incentive stock option (ISO) is recognized for AMT purposes, but is not recognized for regular income tax purposes.
• C)A different amount has been deducted for circulation expenditures for AMT purposes and for regular income tax purposes.
• D)Only a.and b.
• E)a., b., and c.

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Definitions:

Orbital

A region in an atom where there is a high probability of finding electrons.

Increasing pKa

This refers to the process or trend of increasing the acidity constant (pKa), indicating a decrease in acid strength.

Resonance Structures

Different Lewis structures for the same molecule that depict different possible arrangements of electrons.

AntiAromatic

Refers to organic compounds that are cyclic, conjugated, contain a planar ring system, but do not follow Huckel's rule, resulting in increased instability.