incomesales 4000000interest income 100000 of


INCOME:
Sales = 4,000,000
Interest income (100,000 of tax-exempt interest other than from specified private activity bonds) = 200,000
short-term capital gain = 50,000

EXPENSES:
COGS = 2,000,000
Wages 400,000
Interest expense = 50,000
Depreciation = 150,000 (under gaap, depreciation expense is 100,000; for purpose of AMT depreciation is 125,000)
Charitable contributions = 100,000
Misc = 500,000


Beneficial's QPAI for purposes of the domestic production activites deduction is 600,000. Compute Beneficial's 2012 regular income tax liability and its AMT. 

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Accounting Basics: incomesales 4000000interest income 100000 of
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