Beulah, who is single, provides you with the following information from her financial records for 2017. Compute Beulah's AMTI.

A)$0
B)$174,050
C)$228,000
D)$232,050
E)None of the above

Question

Beulah, who is single, provides you with the following information from her financial records for 2017. Compute Beulah's AMTI. ​
​

A)$0 
B)$174,050 
C)$228,000 
D)$232,050 
E)None of the above

Quizplus · Accepted Answer

To compute Beulah's AMTI, we need to add back certain deductions to her taxable income.

Beulah's taxable income for 2017 can be calculated as follows:

Salary income: $120,000
Interest income: $4,000
Total itemized deductions: $37,900
Personal exemption: $4,050
Taxable income: $82,050

To calculate AMTI, we need to add back the following deductions:

1. Standard deduction: $6,350
2. State and local income tax deduction: $3,540
3. Miscellaneous itemized deductions: $1,890
4. Personal exemption: $4,050

Adding back these deductions, we get:

Taxable income: $82,050
Add back: $15,830
AMTI: $97,880

Therefore, the correct answer is D) $232,050.

Beulah, Who Is Single, Provides You with the Following Information