The Alpha- Beta Affiliated Group Has Consolidated Taxable Income of $400,000

question 18

Multiple Choice

The Alpha- Beta affiliated group has consolidated taxable income of $400,000 and tentative general business credit of $80,000 in the current year. The maximum general business credit that can be used on the consolidated return is

• A) $14,750.
• B) $64,000.
• C) $69,250.
• D) $80,000.

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Definitions:

Partnerships

A business structure where two or more individuals manage and operate a business in accordance with terms set out in a Partnership Agreement.

Sole Proprietorship

A business owned and operated by one person.

Corporation

A business structure that creates an entity separate from its owners and managers.

Public Company

A corporation whose shares are traded openly on stock exchanges, subject to regulatory oversight and required to disclose financial and other significant information.