a. Percentage depletion in excess of a property's adjusted basis at the beginning of the tax year
b. MACRS depreciation deducted on a machine placed in service in the current year
c. Sec. 179 expense deducted on delivery trucks placed in service in the current year
d. Gain or loss realized on the sale of a machine placed in service four years ago
e. Tax-exempt interest earned on State of Michigan private activity bonds
f. Tax-exempt interest earned on State of Michigan general revenue bonds
g. Long-term contract for which the taxpayer uses the completed contract method
C:5-9 What adjustment does a corporation make if ACE is more than preadjustment AMTI? If ACE is less than preadjustment AMTI?
C:5-10 Florida Corporation incurs AMT for the first time in the current year. The main reason for incurring the AMT is a $2 million gain on a current year installment sale that Florida is recognizing over ten years for regular tax purposes. Explain to Florida's president how the installment sale can cause Florida to incur the AMT, how its treatment for ACE is similar to and different from the E&P treatment with which
she is familiar, and whether its ACE treatment will partially or completely reverse in future years.