Eastern Corp., a calendar-year corporation, was formed in 2006. On January 2, 2007, it placed five-year property in service. The property was depreciated under the general MACRS system. Eastern did not elect to use the straight-line method. The following information pertains to Eastern:
|
Eastern’s 2007 taxable income |
$300,000 |
|
Adjustment for the accelerated depreciation taken on 2007 five-year property |
1,000 |
|
2007 tax-exempt interest from specified private activity bonds issued in 2003 |
5,000 |
What was Eastern’s 2007 alternative minimum taxable income before the adjusted current earnings (ACE) adjustment?
- $306,000
- $305,000
- $304,000
- $301,000