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 lower tax rate on net capital gain.Ashley's tentative minimum tax is $51,000.
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A) Ashley's tax liability is reduced by $3,500 as the result of the lower tax on net capital gain.
B) Ashley's AMT is increased by $3,500 as the result of the lower tax rate on net capital gain.
C) Ashley's tax liability is $43,500.
D) Ashley's tax liability is $47,000.