King Corporation, an accrual method taxpayer, reports the following results for 2014:
King Corporation, an accrual method taxpayer, reports the following results for 2014:
Regular taxable income before regular tax NOL deduction
$800,000
Minus: Regular tax NOL deduction
Regular taxable income
(200,000)
$600,000
Alternative tax NOL deduction
AMT depreciation adjustment
$175,000
$148,000
Personal property acquired eight years ago and sold this year:
Acquisition cost
$50,000
Regular tax depreciation
AMT depreciation
Increase in LIFO recapture amount
$38,845
$26,845
$75,000
Tax-exempt interest income:
Private activity bonds (not issued in 2009 or 2010)
Other bonds (not issued in 2009 or 2010)
Dividends received (less than 1% ownership)
Dividends paid
$31,000
$33,000
$120,000
$110,000
Please submit the form 4626 solve as pdf file
King is not a small corporation exempt from the alternative minimum tax (AMT), and it has no AMT adjustment for the U.S. production activities deduction. Regular taxable income includes $35,000 of Sec. 1231 gain from a prior year installment sale on which King’s total realized gain was $350,000. Regular taxable income also includes $39,000 of Sec. 1231 gain from a 2014 installment sale on which King’s total realized gain is $195,000. King’s ACE adjustments for prior years are a net positive $500,000. Prepare Form 4626 for King Corporation to report its 2014 AMT liability (if any).
Please use the 2015 IRS form 4626 and solve this tax return and attached as a PDF file.
………………………Answer preview…………………
King Corporation
Taxpayer report
For the year ended December 2014
Regular taxable income before regular tax NOL deduction
Add:
gain from a prior year installment sale undervalued
1231 gain from a 2014 installment sale undervalued $800,000$315,000
$156,000
Minus: Regular tax NOL deduction
Regular taxable income (200,000)
$1071,000………………………………..
APA
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