Which of the following statements is correct?
a. The deduction for personal and dependency exemptions is not permitted in calculating the AMT. Therefore, in converting regular taxable income to AMTI, a positive adjustment is required.
b. To the extent that itemized deductions exceed the standard deduction for regular income tax purposes, a positive AMT adjustment is required in converting regular taxable income to AMTI.
c. The charitable contribution deduction for AMT purposes and for regular income tax purposes can be different. In this situation, a positive AMT adjustment is required for the amount of the difference.
d. Only a. and b. are correct.
e. a., b., and c. are correct.
a
RATIONALE: For choice b., no such adjustment is required. For choice c., the charitable contribution deduction for regular income tax purposes and for AMT purposes is the same. So no AMT adjustment is required.
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Several persons own property as tenants in common. One of the owners desires to sell the property whereas the other owners prefer to retain the property. If the parties cannot reach an agreement, which of the following actions would most likely be taken by the owner who wants to sell?
A. Force the remaining owners to buy his or her interest. B. File a partition action. C. File a foreclosure actions. D. Rent his/her interest to the others.
Major provisions of the Sarbanes-Oxley Act of 2002 include all of the following except:
A) Prohibition of personal loans. B) Protection of employee pension plans. C) CEO and CFO certification. D) Criminal sanctions for tampering with evidence. E) Reimbursement of bonuses and incentive pay.