Molly has generated general business credits over the years that have not been utilized. The amounts generated and not utilized follow:
2013 $2,500
2014 7,500
2015 5,000
2016 4,000
In the current year, 2017, her business generates an additional $15,000 general business credit. In 2017, based on her tax liability before credits, she can utilize a general business credit of up to $20,000
. After utilizing the carryforwards and the current year credits, how much of the general business credit generated in 2017 is available for future years?
a. $0.
b. $1,000.
c. $14,000.
d. $15,000.
e. None of the above.
c
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A. True B. False
The firm Meek & Co., CPAs, was engaged by Reed, the president of Sulk Corp, to prepare its federal and state tax returns by March 15, Year 2, for the fiscal year ended December 31, Year 1. Meek's engagement and its fee of $20,000 were approved by Sulk's board of directors. Meek did not deliver the returns until April 15, Year 2, because Sulk did not provide Meek with the necessary information to complete the service. Sulk refuses to pay Meek. If Meek sues Sulk, Meek will
A. Prevail based on the contract. B. Prevail based on quasi-contract. C. Lose, because it breached the contract. D. Lose, because the March 15 deadline was a condition precedent to Sulk's performance.