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Instructions for Form 4626 - Additional Material

Table of Contents

    Adjusted Current Earnings (ACE) Worksheet

    ▶ See ACE Worksheet Instructions.

    1 Pre-adjustment AMTI . Enter the amount from line 3 of Form 4626 1  
    2 ACE depreciation adjustment:    
    a AMT depreciation 2a      
    b ACE depreciation:            
      (1) Post-1993 property 2b(1)          
      (2) Post-1989, pre-1994 property 2b(2)          
      (3) Pre-1990 MACRS property 2b(3)          
      (4) Pre-1990 original ACRS property 2b(4)          
      (5) Property described in sections 168(f)(1) through (4) 2b(5)          
      (6) Other property 2b(6)          
      (7) Total ACE depreciation. Add lines 2b(1) through 2b(6) 2b(7)      
    c ACE depreciation adjustment. Subtract line 2b(7) from line 2a 2c  
    3 Inclusion in ACE of items included in earnings and profits (E&P):    
    a Tax-exempt interest income 3a      
    b Death benefits from life insurance contracts 3b      
    c All other distributions from life insurance contracts (including surrenders) 3c      
    d Inside buildup of undistributed income in life insurance contracts 3d      
    e Other items (see Regulations sections 1.56(g)-1(c)(6)(iii) through (ix) for a partial list) 3e      
    f Total increase to ACE from inclusion in ACE of items included in E&P. Add lines 3a through 3e 3f  
    4 Disallowance of items not deductible from E&P:    
    a Certain dividends received 4a      
    b Dividends paid on certain preferred stock of public utilities that are deductible under section 247 (as affected by P.L. 113-295, Div. A, section 221(a)(41)(A), Dec. 19, 2014, 128 Stat. 4043) 4b      
    c Dividends paid to an ESOP that are deductible under section 404(k) 4c      
    d Nonpatronage dividends that are paid and deductible under section 1382(c) 4d      
    e Other items (see Regulations sections 1.56(g)-1(d)(3)(i) and (ii) for a partial list) 4e      
    f Total increase to ACE because of disallowance of items not deductible from E&P. Add lines 4a through 4e 4f  
    5 Other adjustments based on rules for figuring E&P:    
    a Intangible drilling costs 5a      
    b Circulation expenditures 5b      
    c Organizational expenditures 5c      
    d LIFO inventory adjustments 5d      
    e Installment sales 5e      
    f Total other E&P adjustments. Combine lines 5a through 5e 5f  
    6 Disallowance of loss on exchange of debt pools 6  
    7 Acquisition expenses of life insurance companies for qualified foreign contracts 7  
    8 Depletion 8  
    9 Basis adjustments in determining gain or loss from sale or exchange of pre-1994 property 9  
    10 Adjusted current earnings. Combine lines 1, 2c, 3f, 4f, and 5f through 9. Enter the result here and on line 4a of Form 4626 10  

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