Answered step by step
Verified Expert Solution
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started