Aqua, Inc., a calendar year corporation formed in 2001, reports the following gross receipts and taxable income for 2001–2012.
|
Year |
Gross Receipts |
Taxable Income |
|
2001 |
$4,000,000 |
$1,450,000 |
|
2002 |
4,200,000 |
1,375,000 |
|
2003 |
6,100,000 |
1,425,000 |
|
2004 |
8,000,000 |
1,400,000 |
|
2005 |
7,000,000 |
1,312,000 |
|
2006 |
7,500,000 |
985,000 |
|
2007 |
7,200,000 |
1,002,000 |
|
2008 |
7,100,000 |
1,010,000 |
|
2009 |
6,500,000 |
990,000 |
|
2010 |
6,300,000 |
982,000 |
|
2011 |
7,800,000 |
850,000 |
|
2012 |
7,900,000 |
900,000 |
a. When is Aqua first exempt from the AMT as a small corporation?
b. Is Aqua subject to the AMT for 2012? Why or why not?