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C) Adjusted gross income is decreased by any tax preference and adjustment items.

C) Adjusted gross income is decreased by any tax preference and adjustment items.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer with reason why the option is correct and why the other options are incorrect
Which of the following is NOT a step in the calculation of the alternative minimum tax, as presented in the module? A) The net amount of alternative minimum taxable income is reduced by an appropriate exemption amount to arrive at the AMT base. B) The AMT payable is reduced by any refundable credits. C) Adjusted gross income is decreased by any tax preference and adjustment items. D) Adjusted gross income is increased by any tax preference items and increased or decreased by the adjustment items.
Transcribed Image Text:Which of the following is NOT a step in the calculation of the alternative minimum tax, as presented in the module? A) The net amount of alternative minimum taxable income is reduced by an appropriate exemption amount to arrive at the AMT base. B) The AMT payable is reduced by any refundable credits. C) Adjusted gross income is decreased by any tax preference and adjustment items. D) Adjusted gross income is increased by any tax preference items and increased or decreased by the adjustment items.
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