Agnes Is Able to Reduce Her Regular Income Tax Liability

Multiple Choice

Agnes is able to reduce her regular income tax liability from $40,000 to $36,000 as the result of the alternative tax on net capital gain.Agnes' tentative AMT is $50,000.

A) Agnes' tax liability is reduced by $4,000 as the result of the alternative tax calculation on net capital gain.
B) Agnes' AMT is increased by $4,000 as the result of the alternative tax calculation on net capital gain.
C) Agnes' tax liability is $46,000.
D) Agnes' tax liability is $54,000.
E) None of the above.