Brown Inc., a calendar year taxpayer, reported the following transactions.
|
Taxable income |
$2,600,000 |
|
Depreciation for regular income tax purposes on realty in |
|
|
excess of ADS (placed in service in 1996) |
550,000 |
|
Excess amortization of certified pollutions control facilities |
450,000 |
|
Tax exempt interest on private activity bonds (issued in 2007) |
1,030,000 |
|
Percentage depletion in excess of the property’s adjusted basis |
60,000 |
a. Calculate Brown’s regular income tax liability.
b. Calculate Brown’s tentative AMT.
c. Calculate Brown’s AMT.