How will Geoff treatment of mine

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Problem - In 2019, Geoff incurred $900,000 of mine and exploration expenditures. He elects to deduct the expenditures as quickly as the tax law allows for regular income tax purposes.

Required -

a. How will Geoff's treatment of mine and exploration expenditures affect his regular income tax and AMT computations for 2019?

b. How can Geoff avoid having AMT adjustments related to the mine and exploration expenditures?

c. What factors should Geoff consider in deciding whether to deduct the expenditures in the year incurred?

Reference no: EM132669492

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