Exercise 15-20 (Algorithmic) (LO. 5) Yanni, a single individual, reports the following information for the tax...

Exercise 15-20 (Algorithmic) (LO. 5)

Yanni, a single individual, reports the following information for the tax year.

Salary	$115,600
State income taxes	11,560
Mortgage interest expense	10,404
Charitable contributions	2,312
Interest income	1,734
Personal exemption	4,050

Click here to access the exemption table. If required, round your answers to the nearest dollar.

Compute the following for Yanni.

a. Regular taxable income:	$
b. AMT base:	$
c. Tentative minimum tax:	$

Solutions

Expert Solution

a)Regular taxable income

Salary	$115,600
Interest income	$1,734
Less:ITEMIZED DEDUCTIONS
State income taxes	$11,560
Mortgage interest expense	$10,404
Charitable contributions	$2,312
TAXABLE INCOME BEFORE EXEMPTIONS:	$93,058
LESS:Personal exemption	$4,050
TAXABLE INCOME	$89,008

b.AMT INCOME

TAXABALE INCOME BEFORE EXEMPTIONS	$93,058
ADD:ADJUSTMENTS:State income taxes	$11,560
AMTI	$104,618

c.Tentative minimum tax:

Alternate minimum tax income	$104,618
less:AMT Exemption(filing status:single)	$54,300
Minimum tax base	$50,318
Tax Rate	26%
Tentative minimum tax	$13,082.68

NOTE:The AMT exemption amount for 2017 is $54,300 for singles and $84,500 for married couples filing jointly.The rate of AMT Is 26%. if you have been given different rates kindly adjust above. I have taken these fro IRS website.You can check and confirm or make changes accordingly

ekkarill92 answered 11 months ago

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