Determine Farr AMT adjustments and preferences

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Problem - Farr is single, has no dependents, and does not itemize her deductions. She reports the following items on her 2019 tax return.

Bargain element from the exercise of an ISO (no restrictions apply to the stock) $45,000

MACRS depreciation on shopping mall building acquired in 2014 49,000

Percentage depletion in excess of property adjusted basis 50,000

Taxable income for regular income tax purposes 221,000

Regular tax liability 52,544

Required -

a. Determine Farr's AMT adjustments and preferences for 2019.

b. Calculate Farr's AMT for 2019.

Reference no: EM132669538

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