Adjusted Current Earnings
About Adjusted Current Earnings:
Or ACE. It may be defined as an adjustment in arriving at a corporation's alternative minimum taxable income. This adjustment increases (or decreases) taxable income by an amount equal to 75% of the excess of ACE over (under) alternative minimum taxable income (determined without regard to the ACE adjustment). In computing ACE before 1994, depreciationwas generally computed using the rules for individuals. Adjusted current earnings include items that are not included in taxable income but are included in earnings and profits, such as tax-exempt interest income and death benefits from life insurance contracts. Former IRC (check if this IRC provision is current here) § 56(g).