When comparing the alternative minimum tax calculation to the regular income tax calculation, which deductions are only permitted in the regular income tax calculation?
i personal exemption
ii state and local tax deduction
iii miscellaneous itemized deductions
iv medical expense deduction
a. i and ii only
b. iii and iv only
c. i, ii, iii
d. i, ii, iii, iv

C) I, II, III

Explanation:

When you are calculating alternative minimum tax many of the basic deductions allowed when calculating regular income are not permitted. When you are calculating alternative minimum tax there are no personal exemptions, no deductions for state and local taxes, no standard deductions and no deductions for miscellaneous items.

Medical expenses are deductible when calculating alternative minimum tax, but only if they exceed 10% of adjusted gross income (AGI).

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: