Randy Lowe reported the following items in computing his regular federal income tax for 2007:
|
Personal exemption |
$3,400 |
|
Itemized deduction for state taxes |
1,500 |
|
Cash charitable contributions |
1,250 |
|
Net long-term capital gain |
700 |
|
Excess of accelerated depreciation over straight-line depreciation on real property placed in service prior to 1987 |
600 |
|
Tax-exempt interest from private activity bonds |
400 |
What are the amounts of tax preference items and adjustments that must be added to or subtracted from regular taxable income in order to compute Lowe’s alternative minimum taxable income for 2007?
|
Preferences |
Adjustments |
|
|
a. |
$1,000 |
$4,900 |
|
b. |
$1,000 |
$5,600 |
|
c. |
$1,700 |
$6,150 |
|
d. |
$2,250 |
$5,400 |