Wallace Owns a Construction Company That Builds Both Commercial and Residential

question 75

Multiple Choice

Wallace owns a construction company that builds both commercial and residential buildings.He contracts to build a residential building for $800,000, and for which he is eligible to use the completed contract method of accounting.In the current year for regular income tax purposes, Wallace does not recognize any gross income on the contract.Under the percentage of completion method, the income recognized under the contract would have been
$60,000.Wallace's AMT effect is:

• A)$0.
• B)$60,000 negative adjustment.
• C)$60,000 positive adjustment.
• D)$800,000 positive adjustment.

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Definitions:

Airborne Precautions

Infection control measures taken to prevent disease transmission through air currents, relevant for pathogens that can travel on dust particles or small respiratory droplets.

Standard Precautions

A set of infection control practices used to prevent transmission of diseases that can be acquired by contact with blood, bodily fluids, non-intact skin, and mucous membranes.

Tuberculosis (TB)

A serious infectious disease caused by the bacterium Mycobacterium tuberculosis that primarily affects the lungs but can spread to other parts of the body.

AFB Smear

A laboratory test that involves staining a sample and examining it under a microscope to identify acid-fast bacilli, commonly used to diagnose tuberculosis.