Archie runs a small mineral exploration business (as a sole proprietorship). In 2021, he purchased...
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Archie runs a small mineral exploration business (as a sole proprietorship). In 2021, he purchased land (for $84,000 ) where he suspected a magnesium deposit was located. He incurred $26,000 of exploration costs related to the development of the magnesium mine in 2021 and an additional $30,000 of exploration costs in 2022. Archie elected to deduct these expenditures for regular tax purposes in both 2021 and 2022. In 2023, given a decline in magnesium prices, Archie sold the property for $72,000, rather than bring the mine to production. What AMT adjustments are required in 2023 related to mining exploration and development expenditures and the sale of the land? As a result, in 2023 a \$ AMT adjustment is required for mine exploration expenditures and a $ AMT adjustment for the sale of the land. Feedback Check My Work It is necessary to determine not only the amount of an adjustment but also whether the adjustment is positive or negative
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