Adjustment for circulation expenditures

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Reference no: EM13142399

During its first year of operations, Sherry's business incurred circulation expenditures of $90,000. Since the income of the business is small, Sherry decides to capitalize the expenditures and to amortize them over 3 years for regular income tax purposes. The AMT adjustment for circulation expenditures for the first year of operations is:

A) $0.

B) Negative adjustment of $30,000.

C) Positive adjustment of $30,000.

D) Positive adjustment of $60,000.

E) None of the above.

Reference no: EM13142399

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