Ashly Is Able to Reduce Her Regular Income Tax Liability

Multiple Choice

Ashly is able to reduce her regular income tax liability from $47,000 to $43,500 as the result of the alternative tax on net capital gain.Ashly's tentative AMT is $51,000.

A) Ashly's tax liability is reduced by $3,500 as the result of the alternative tax calculation on net capital gain.
B) Ashly's AMT is increased by $3,500 as the result of the alternative tax calculation on net capital gain.
C) Ashly's tax liability is $43,500.
D) Ashly's tax liability is $47,000.
E) None of the above.