Multiple Choice
Vicki owns and operates a news agency (as a sole proprietorship) .During 2016,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 2016.In addition,Vicki incurred $15,000 in circulation expenditures in 2017 and again elected expense treatment.What AMT adjustments will be required in 2016 and 2017 as a result of the circulation expenditures?
A) $16,000 positive in 2016,$2,000 positive in 2017.
B) $16,000 negative in 2016,$2,000 positive in 2017.
C) $16,000 negative in 2016,$10,000 positive in 2017.
D) $16,000 positive in 2016,$10,000 positive in 2017.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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