Avi
04-29-2005, 02:44 PM
Below is the first part of Question #51.
I understand how to find RTI and thus RIT.
My question is in finding the AMT, I thought you add in 75% of the tax exempt funds. In this case it would first be 75% of the DRD which itself is 70% of 5% of 40M or 75% of 1.19 M.
The next thing should be 75% of the Non-Pro-Rated Tax-exempt investment income or 75% of 85% of 6M (120M * .05) since 15% of that was added into RTI.
The answer does not seem to include that.
Why?
I understand how to find RTI and thus RIT.
My question is in finding the AMT, I thought you add in 75% of the tax exempt funds. In this case it would first be 75% of the DRD which itself is 70% of 5% of 40M or 75% of 1.19 M.
The next thing should be 75% of the Non-Pro-Rated Tax-exempt investment income or 75% of 85% of 6M (120M * .05) since 15% of that was added into RTI.
The answer does not seem to include that.
Why?