Sigfrid has a tentative general business credit of $78,000 for the current year. His net regular tax liability before the general business credit is $162,000, and his tentative minimum tax is $29,000. Complete the statements below that outline Sigfrid's limitation on the general business credit. Sigfrid's general business credit is limited to his net income tax reduced by the greater of his tentative minimum tax or 25% of the net regular tax liability that exceeds $25000. Therefore, Sigfrid's allowable general business credit for the year is $_____________
Sigfrid has a tentative general business credit of $78,000 for the current year. His net regular tax liability before the general business credit is $162,000, and his tentative minimum tax is $29,000. Complete the statements below that outline Sigfrid's limitation on the general business credit. Sigfrid's general business credit is limited to his net income tax reduced by the greater of his tentative minimum tax or 25% of the net regular tax liability that exceeds $25000. Therefore, Sigfrid's allowable general business credit for the year is $_____________
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 12-21 (c) (LO. 2)
Sigfrid has a tentative general business credit of $78,000 for the current year. His net regular tax liability before the general business credit is $162,000, and his tentative minimum tax is $29,000.
Complete the statements below that outline Sigfrid's limitation on the general business credit.
Sigfrid's general business credit is limited to his net income tax reduced by the greater of his tentative minimum tax or 25% of the net regular tax liability that exceeds $25000.
Therefore, Sigfrid's allowable general business credit for the year is $_____________
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