Steve Records a Tentative General Business Credit of $110,000 for the Current

Question

Examlex · Accepted Answer

The Answer is

\begin{array}{llcc} ext { Net income tax} &&\$125,000*\ ext { Less: } & ext { The greater of: } \&\& ext {- \$ 100,000 (tentative minimum tax) or } &\underline{(100,000)}\& ext { - \$ 25,000[25 \% ×(\$ 125,000-\$ 25,000)] } &\ ext { Amount of general business credit allowed} &&\underline{\underline{\$25,000}}\\end{array}

*Net income tax

= \$ 125,000

(regular tax liability)

+ \$ 0

[alternative minimum tax (

\$ 100,000

tentative minimum

\operatorname { tax } - \$ 125,000

regular tax liability)] -

\$ 0

(nonrefundable credits).

Essay