Oak Corporation holds the following general business creditcarryovers. 2013 $100

Question

Oak Corporation holds the following general business creditcarryovers.

2013 $100,000

2014 90,000

2015 80,000

2016 60,000

Totalcarryovers                                 $330,000

If the general business credit generated by activities during2017 equals $170,000 and the total credit allowed during thecurrent year is $320,000 (based on tax liability), what amounts ofthe current general business credit and carryovers are utilizedagainst the 2017 income tax liability? What is the amount of unusedcredit carried forward to 2018?

Explanation / Answer

Answer

170000 of 2017 business credit

330000    carryover

500000 business credit total

320000   allowable and used 2017

180000 carry over 2018

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