Pocahontas, Inc Which of the Following Statements Is True?
A) There Is

question 8

Multiple Choice

Pocahontas, Inc. had the following results for its first two years of operation: $$\begin{array} { l r r } \text { Regular tax liability } & \$ 231,200 & \$ 130,000 \\\text { Tentative minimum tax } & \$ 158,000 & \$ 150,000\end{array}$$ Which of the following statements is true?

• A) There is an AMT credit carryback from 2016 to 2015.
• B) There is an AMT credit carryover from 2016 to 2017.
• C) There is an AMT credit carryover from 2015 to 2016.
• D) There is an AMT credit carryback from 2015 to 2014.

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Definitions:

Fair Value

The market-based measurement of the value of an asset or liability, used for financial reporting purposes.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide the financial reporting activities of companies worldwide.

GAAP

Generally Accepted Accounting Principles, a common set of accounting principles, standards, and procedures that companies must follow when compiling their financial statements.

Double-Entry System

An accounting method that requires every financial transaction to be recorded in at least two accounts—where one account is debited and another is credited—to ensure accuracy and balance in the financial records.