The General Business Credit May Not Exceed the Net Income

question 1340

Multiple Choice

The general business credit may not exceed the net income tax minus the greater of the tentative minimum tax or

• A) 25% of the net regular tax liability above $25,000.
• B) 25% of the net regular tax liability above $20,000.
• C) 20% of the net regular tax liability above $20,000.
• D) 20% of the net regular tax liability above $25,000.

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Definitions:

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Economic Order Quantity

The ideal order size that minimizes the total costs associated with inventory, including holding and ordering costs.

Variable Cost

Costs that vary in direct proportion to changes in the level of production or activity within a business.

Carrying Cost

The total cost of holding inventory, including storage, insurance, and taxes, among other expenses.