Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The question is about calculating the amount of business tax credits utilized and carried forward. First, we add up all the carryovers from previous years:

The question is about calculating the amount of business tax credits utilized and carried forward. First, we add up all the carryovers from previous years: $5,000 (from 2015) + $15,000 (from 2016) + $6,000 (from 2017) + $19,000 (from 2018) = $45,000. This is the total amount of carryovers available for 2019. Next, we know that the total credit allowed for the current year is $60,000. To find out how much of this is left after using the carryovers, we subtract the total carryovers from the total credit allowed: $60,000 - $45,000 = $15,000. This is the remaining credit that can be used in 2019. The general business credit generated in 2019 is $36,000. Since we can only use $15,000 more of credit in 2019, we subtract this from the total credit generated in 2019 to find out how much is left to carry forward to 2020: $36,000 - $15,000 = $21,000. So, the amounts of the current general business credit and carryovers utilized

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Walter Jr. Harrison, Charles T. Horngren, C. William Thomas, Greg Berberich, Catherine Seguin

6th Canadian edition

134564146, 978-0134141091, 134141091, 978-0134564142

More Books

Students also viewed these Accounting questions

Question

What are conversion costs? Why are they called this? LO1.

Answered: 1 week ago