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velikii [3]
3 years ago
8

arlson's general business credit (before limitations) for the current year is $99,500. His net income tax is $218,900, tentative

minimum tax is $197,010, and net regular tax liability is $207,955. He reports no other Federal income tax credits for the year. Determine Carlson's general business credit allowed for the year, and any amounts that can be carried back and forward. If required, round your computations to the nearest dollar. Carlson's general business credit allowed for the year is $fill in the blank 1 and his unused general business credit of $fill in the blank 2 may be carried back or forward.
Business
1 answer:
pantera1 [17]3 years ago
3 0

Answer: $21,890

Explanation:

The general business credit allowed for the year is the net income tax less the higher amount between the tentative minimum tax and the net regular tax liability after adjustments.

Adjustment to net regular tax liability:

= 25% * (Net regular tax - 25,000)

= 25% * (207,955 - 25,000)

= $45,738.75

Greater figure is the tentative minimum tax of $197,010

Business credit allowed is:

= 218,900 - 197,010

= $21,890

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