Kelly Purchases a Warehouse for Her Sole Proprietorship on January

Multiple Choice

Kelly purchases a warehouse for her sole proprietorship on January 5,2013 for $1,000,000.She claims MACRS depreciation of $25,641 for the year.The depreciation under the Alternative Depreciation System (ADS) is $25,000.What is the amount of Kelly's AMT adjustment for depreciation on the warehouse?

A) no adjustment is necessary
B) a positive $ 641
C) a negative $ 641
D) a positive $25,641
E) a negative $25,641