Kiki incurred intangible drilling costs (IDC) of $189,600 during the year and deducted that amount for regular tax purposes. Her net oil and gas income for the year was $227,520. Currently, Kiki has no income from geothermal wells. Kiki has calculated her current-year IDC preference to be $18,960. Did Kiki calculate the current-year IDC preference amount correctly?___________. Enter Kiki's preference for IDC: $__________.
Kiki incurred intangible drilling costs (IDC) of $189,600 during the year and deducted that amount for regular tax purposes. Her net oil and gas income for the year was $227,520. Currently, Kiki has no income from geothermal wells. Kiki has calculated her current-year IDC preference to be $18,960. Did Kiki calculate the current-year IDC preference amount correctly?___________. Enter Kiki's preference for IDC: $__________.
Chapter12: Alternative Minimum Tax
Section: Chapter Questions
Problem 23CE
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Question
Kiki incurred intangible drilling costs (IDC) of $189,600 during the year and deducted that amount for regular tax purposes. Her net oil and gas income for the year was $227,520. Currently, Kiki has no income from geothermal wells. Kiki has calculated her current-year IDC preference to be $18,960.
Did Kiki calculate the current-year IDC preference amount correctly?___________.
Enter Kiki's preference for IDC: $__________.
![Kiki incurred intangible drilling costs (IDC) of $189,600 during the year and deducted that amount for regular tax purposes. Her net oil and
gas income for the year was $227,520. Currently, Kiki has no income from geothermal wells. Kiki has calculated her current-year IDC
preference to be $18,960.
Did Kiki calculate the current-year IDC preference amount correctly?
Enter Kiki's preference for IDC: $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdc386798-0c13-4685-aedf-e460989742cd%2F66577214-e1b4-4038-a02f-db9c02eca472%2F3phcrzg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Kiki incurred intangible drilling costs (IDC) of $189,600 during the year and deducted that amount for regular tax purposes. Her net oil and
gas income for the year was $227,520. Currently, Kiki has no income from geothermal wells. Kiki has calculated her current-year IDC
preference to be $18,960.
Did Kiki calculate the current-year IDC preference amount correctly?
Enter Kiki's preference for IDC: $
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