On January 3,1997,White Corporation Acquired an Office Building for $100,000

Multiple Choice

On January 3,1997,White Corporation acquired an office building for $100,000 and claimed MACRS depreciation of 2.461%.The Alternative Depreciation System rate for the first recovery year is 2.396%.What was White's AMT adjustment (or preference) for depreciation with respect to the office building in 1997?

A) $65 positive adjustment.
B) $65 negative adjustment.
C) $0 adjustment or preference.
D) $2,461 positive adjustment.
E) None of the above.