Multiple Choice
Vicki owns and operates a news agency (as a sole proprietorship) .During 2019, she incurred expenses of $24,000 to increase circulation of newspapers and magazines that her agency distributes.For regular income tax purposes, she elected to expense the $24,000 in 2019.In addition, Vicki incurred $15,000 in circulation expenditures in 2020 and again elected expense treatment.What AMT adjustments will be required in 2019 and 2020 as a result of the circulation expenditures?
A) $16,000 positive in 2019, $2,000 positive in 2020.
B) $16,000 negative in 2019, $2,000 positive in 2020.
C) $16,000 negative in 2019, $10,000 positive in 2020.
D) $16,000 positive in 2019, $10,000 positive in 2020.
Correct Answer:
Verified
Correct Answer:
Verified
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