P-S Is an Affiliated Group That Files a Consolidated Tax

question 49

Essay

P-S is an affiliated group that files a consolidated tax return.For the current year,P has separate taxable income of $350,000 and S's separate taxable loss is $150,000.The group can take a tentative $50,000 consolidated general business credit.If the group's regular tax liability is $61,250 and their tentative minimum tax liability is $34,500,what is their general business credit limitation? The only difference between their taxable income and AMTI is the statutory exemption.

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Definitions:

Cough Reflex

A rapid expulsion of air from the lungs typically triggered by irritation or obstruction in the air passages, serving as a protective mechanism to clear the trachea and bronchi.

Mucus

A slimy substance produced by mucous membranes and glands for lubrication and protection of various internal body surfaces.

Upper Respiratory Tract

Nasal cavity, pharynx, and associated structures.

Pharynx

The muscular tube that forms part of the digestive and respiratory systems, connecting the mouth and nasal cavity to the esophagus and larynx.