Question

Persephone has a regular tax liability of $12,475 and a tentative minimum tax of $11,500. Given just this information, what is her alternative minimum tax liability for the year?$0$11,500$975$12,475

Answer 1

$0

Step-by-step explanation:

Persephone's regular tax liability of $12,475 exceeds the tentative minimum tax of $11,500. Therefore, she does not owe an alternative minimum tax liability hence the answer becomes $0.

Side note: If it were otherwise(tentative minimum > regular tax liability), she would have owed the difference between the two tax liability amounts.