Jackson Corporation has accumulated minimum tax credits of $475,000 from tax years prior to 2018. If...

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Jackson Corporation has accumulated minimum tax credits of $475,000 from tax years prior to 2018. If...

Jackson Corporation has accumulated minimum tax credits of $475,000 from tax years prior to 2018. If 2018 regular tax before credits is $210,000 and Jackson qualifies for general business credits of $13,000, calculate its allowable minimum tax credit for 2018.

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Answer 1

Answer #1

CALCULATION OF ALLOWABLE MINIMUM TAX CREDIT:

MINIMUM ALLOWABLE TAX CREDIT = Accumulated minimum tax credits prior to 2018 Less Amount allowable as credit for such prior taxable years

Accumulated minimum tax credits prior to 2018{given} - $ 4,75,000

Amount allowable as credit for such prior taxable years - $ 13,000

MINIMUM ALLOWABLE TAX CREDIT = $ 4,75,000 - $ 13,000

MINIMUM ALLOWABLE TAX CREDIT = $ 4,62,000

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Answer 2

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