Oak Corporation holds the following general business credit carryovers: 2016 $5,000 2017 15,000 2018 6,000 2019 19,000 Total carryovers $45,000 The Oak's general business credit generated by 2020 activities equals $36,000 and the total credit allowed durir $60,000 (based on tax liability). Enter the amount (if any) of each year's carryover utilized in 2020. Amount of Carryover Year Utilized

Oak Corporation holds the following general business credit carryovers: 2016 $5,000 2017 15,000 2018 6,000 2019 19,000 Total carryovers $45,000 The Oak's general business credit generated by 2020 activities equals $36,000 and the total credit allowed durir $60,000 (based on tax liability). Enter the amount (if any) of each year's carryover utilized in 2020. Amount of Carryover Year Utilized

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

Oak Corporation holds the following general business credit carryovers:
2016
$5,000
2017
15,000
2018
6,000
2019
19,000
Total carryovers
$45,000
The Oak's general business credit generated by 2020 activities equals $36,000 and the total credit allowed durir
$60,000 (based on tax liability).
Enter the amount (if any) of each year's carryover utilized in 2020.
Amount of
Carryover
Year
Utilized

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