[Tobecpa1]

I’m using Becker and it didn’t seem to me that they explained well the Corporate AMT and ACE. On the pass key all they mentioned was the Corp AMT is heavily tested in adjustments, preferences and ACE, exemption , credit and Min tax credit carry forward but didn’t provide any example. I have a hard time I understand this topic. Could someone please help?-

Also – please help me understand this question:

Boone Corporation, which is not exempt from the alternative minimum tax, reported adjusted current earnings (ACE) of $500,000 for 2012. Its alternative minimum taxable income (before the alternative minimum tax NOL deduction and ACE adjustment) was $200,000. Boone Corporation’s alternative minimum taxable income (after exemption) for 2012 was

The answer: 425,000

Thank you.