Green Corporation is not eligible for the first year small corporation AMT exemption. Using the accrual method, Green reported the following taxable income and tax liability data for 2009:
Gross profit from sales$300,000
Dividends: From
30%-owned corporation 10,000
From 10%-owned corporation 20,000
Gain on sale of machine 12,778
Gain on installment sale of
land 25,000
Gross Income$367,778
Operating expenses (other than depreciation)(175,000)
Depreciation (40,000)
Deduction
for organizational expenditures (500)
Dividends-received deduction (22,000)
Total deductions ($237,500)
Taxable
Income$130,278
Regular Tax $34,058
Assume the following additional facts:
The corporation earned tax-exempt bond
interest of $15,000. The bonds are not private activity obligations and were issued in 2007.
Upon the death of an executive,
the corporation received life insurance proceeds of $100,000.
On January 30, 2009, the corporation sold the land for a total
gain of $77,000, of which it reported $25,000 under the installment method for regular tax purposes. Green Corp. is not a
dealer, and it pays no interest on the taxes owed on the deferred gain.
The gain reported for AMTI and ACE purposes on the
sale of the machine is $5,860.
Depreciation for AMTI and ACE purposes is $32,500
The corporation incurred $12,500 of
organizational expenditures in November 2005. The corporation expenses $5,000 of these expenditures in 2005 and is amortizing
the remaining $7,500 over 180 months. The total amortization for 2009 is $500.
what is unadjusted AMTI? ACE? AMTI? Exemption? AMT?