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Vicki owns and operates a news agency (as a sole proprietorship-(Answered)

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Vicki owns and operates a news agency (as asole proprietorship). During2015, she incurred expenses of $24,000 to increasecirculationof newspapers and magazines that her agency distributes. For regularincome taxpurposes, she elected to expense the $24,000 in 2015. In addition, Vicki incurred $15,000 in circulation expenditures in 2016 and again elected expensetreatment. What AMT adjustments will berequiredin 2015 and 2016 as a result of the circulation expenditures?

a. $16,000 negative in 2015, $10,000 positive in 2016.
b. $16,000 positive in 2015, $2,000 positive in 2016.
c. $16,000 positive in 2015, $10,000 positive in 2016.
d. $16,000 negative in 2015, $2,000 positive in 2016.
e. None of these choices are correct.


 

Paper#9209580 | Written in 27-Jul-2016

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