What Is Gigantic Corporation's Net Tax Liability If Its Taxable

question 60

Multiple Choice

What is Gigantic Corporation's net tax liability if its taxable income is $325,000 and it has a general business credit of $125,000?

• A)$200,000
• B)$63,750
• C)$21,250
• D)0

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Definitions:

Long-Lived Assets

Assets that are expected to provide economic benefits to a company over a period longer than one year, such as buildings, machinery, and land.

Physical Substance

A characteristic referring to tangible assets which have a physical form and presence, as opposed to intangible assets like patents or copyrights.

Intangible Assets

Non-physical assets that have a value to the company, such as intellectual property, brand recognition, and goodwill.

Current Liabilities

Short-term financial obligations a company owes and is expected to pay within one year or within its operating cycle.