Which of the Following Statements Is True

question 39

Multiple Choice

Which of the following statements is true?

• A)Small corporations with average annual gross receipts of less than $10 million are not subject to AMT.
• B)All corporations are subject to AMT.
• C)The AMT exemption amount is $40,000 for corporations with AMT income of $150,000 or less.
• D)The AMT rate is 25% of AMT income after exemption.

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Definitions:

Fixed Costs

Business expenses that are not dependent on the level of goods or services produced by the business, such as rent and salaries.

Marginal Costs

The financial implication of manufacturing an extra unit of a product or service.

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices within a given period.

Economic Profit

The profit a firm makes after subtracting both its explicit (direct) and implicit (indirect or opportunity) costs from its total revenues.