Unformatted text preview: that may be carried back or forward. Part 2 : Falcon Corporations general business credit for the current year is $85,000. Falcons net regular tax liability is $107,000, and its tentative minimum tax is $88,000. Required : Compute Falcons general business credit for the current tax year. Falcons general business credit for the year is limited to $19,000, determined as follows: Net income tax $107,000 Less: The greater of: $88,000 (tentative minimum tax) $20,500 [25% ($107,000 $25,000)] (88,000) Amount of general business credit allowed $19,000 Note: Falcon then has $660,000 ($85,000 $19,000) of unused general business credits that may be carried back or forward....
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- Fall '08
- Corporation, alternative minimum tax, general business credit