Statement of mining exploration expenditures

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In 2009, Ray incurs $60,000 of mining exploration expenditures, and deducts the entire amount for regular income tax purposes. Which of the following statements is incorrect?

A) For AMT purposes, Ray will have a positive adjustment of $54,000 in 2009.

B) Ray will have a negative AMT adjustment of $6,000 in 2014.

C) Over a 10-year period, positive and negative adjustments will net to zero.

D) The AMT adjustment for mining exploration expenditures cannot be avoided if the taxpayer elects to write the expenditures off over a 10-year period.

E) All of the above are correct.

Reference no: EM13142431

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