Which of the Following Is True of the Alternative Minimum

question 21

Multiple Choice

Which of the following is true of the alternative minimum tax?

• A)The alternative minimum tax is designed to ensure that high income taxpayers do not pay excessive amounts of income tax.
• B)For 2014, the alternative minimum tax rates are 20 percent and 30 percent, depending on the taxpayer's income.
• C)The amount of a taxpayer's state income tax may not be deducted for the purpose of computing the alternative minimum tax.
• D)All tax-exempt interest is a tax preference item for the alternative minimum tax.
• E)None of the above are true.

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