Question: Mark is a single taxpayer who has a regular tax liability of $41,500 for the current year. Mark has no itemized deductions he claims the standard deduction. Mark also has $1500 of interest from a specified private activity municipal bond. His adjusted gross income for the year is $175,000. In addition, Mark has excess MACRS deductions of $3000 and percentage depletion in excess of adjusted basis of $10000. What is the AMT income for Mark?
a. $165,000.
b. $175,000.
c.$185,000.
d. $188,000.
e. $189,500