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For a long-term contract, taxpayers are required to use the completed contract method for AMT purposes.

a) True
b) False

User Tcrosley
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Final answer:

The statement in the question is false. Taxpayers are not required to use the completed contract method for AMT purposes for long-term contracts.

Step-by-step explanation:

The statement in the question is false. Taxpayers are not required to use the completed contract method for Alternative Minimum Tax (AMT) purposes for long-term contracts.

The completed contract method is a method of accounting for revenue recognition where a taxpayer does not recognize revenue until the contract is completed. However, for AMT purposes, taxpayers are required to use the percentage of completion method for long-term contracts.

The percentage of completion method requires taxpayers to recognize revenue based on the estimated completion of the contract. This method allows for a more accurate reflection of revenue and expenses throughout the life of the contract.

User Whyguy
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