King Corporation, an accrual method taxpayer, reports the following results
for 2014:
|
Regular taxable income before regular tax NOL deduction |
$800,000 |
|
Minus: Regular tax NOL deduction Regular |
(200,000) $600,000 |
|
Alternative tax NOL deduction AMT depreciation adjustment |
$175,000 $148,000 |
|
Personal property acquired eight years ago and sold this year: Acquisition cost |
$50,000 |
|
Regular tax depreciation AMT depreciation Increase in LIFO recapture amount |
$38,845 $26,845 $75,000 |
|
Tax-exempt interest income: Private activity bonds (not issued in 2009 or 2010) Dividends received (less than 1% ownership) Dividends paid |
$31,000 $120,000 $110,000 |
King is not a small corporation exempt from the alternative minimum tax (AMT),
and it has no AMT adjustment for the U.S. production activities deduction.
Regular taxable income includes $35,000 of Sec. 1231 gain from a prior year
installment sale on which King’s total realized gain was $350,000. Regular
taxable income also includes $39,000 of Sec. 1231 gain from a 2014 installment
sale on which King’s total realized gain is $195,000. King’s ACE adjustments
for prior years are a net positive $500,000. Prepare Form 4626 for King Corporation
to report its 2014 AMT liability (if any).
Please submit the form 4626 solve as pdf file
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