Agnes Is Able to Reduce Her Regular Income Tax Liability

question 107

Multiple Choice

Agnes is able to reduce her regular income tax liability from $40,000 to $36,000 as the result of the alternative tax on net capital gain.Agnes' tentative AMT is $50,000.

• A)Agnes' tax liability is reduced by $4,000 as the result of the alternative tax calculation on net capital gain.
• B)Agnes' AMT is increased by $4,000 as the result of the alternative tax calculation on net capital gain.
• C)Agnes' tax liability is $46,000.
• D)Agnes' tax liability is $54,000.
• E)None of the above.

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