Fall 2013 Q 18
Part A asks for the Statutory Net Income. Isn't that the income without any of the tax adjustments? Why does the solution provide the Taxable Income?
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Part A asks for the Statutory Net Income. Isn't that the income without any of the tax adjustments? Why does the solution provide the Taxable Income?
Comments
Statutory Net Income is after deduction of taxes. The solution provides the regular and the alternative minimum taxable incomes in order to calculate the taxes.
The examiners report calculates NET IL as follows:
Net IL = 32k + (43.5k – 34k) + (40k – 36k) + (42k – 40k) + (37.5k – 37k) = 48,000
When I add these numbers up I get 38,000 am I missing part of the calculation?
I verify that the above formula equals 48,000.
Is the AMT portion of this question outdated?
Yes. AMT is no longer in force.