Unless circulation expenditures are amortized over a three-year period for regular income tax purposes, there will be an AMT adjustment.

Question

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Circulation expenditures must be amortized over a three-year period for regular income tax purposes to avoid an AMT adjustment. If they are not amortized, the adjusted current earnings (ACE) for the alternative minimum tax (AMT) calculation will be increased, resulting in a higher potential AMT liability.

Unless Circulation Expenditures Are Amortized Over a Three-Year Period for Regular