Ashley Can Reduce Her Regular Income Tax Liability from $47,000

Multiple Choice

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

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