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During the current year Joule Company a sole proprietorship earned general business tax credits of $30,000 for energy conservation and rehabilitation expenditures The owner Mark Joule knows


During the current year, Joule Company, a sole proprietorship, earned general business tax credits of $30,000 for energy conservation and rehabilitation expenditures. The owner, Mark Joule, knows that the overall credit will be limited. He provides you with the following information for the current year: regular tax (before credits) = $37,500; tentative minimum tax = $20,200; alternative minimum tax = $0; foreign tax credit = $4,500; other nonrefundable credits = $6,100. Mark also has a $3,000 carryforward of general business credit from the prior year.

a. What is the current year limitation on Mark’s general business credit?

b. What is Mark’s allowable general business credit in the current year and where does it come from?

c. What is Mark’s general business credit carryover?

Apr 02 2020 View more View Less

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