The Alpha-Beta Affiliated Group Has a Consolidated Regular Tax Amount

question 104

Multiple Choice

The Alpha-Beta affiliated group has a consolidated regular tax amount of $52,000 and a tentative minimum tax amount of $50,000 in the current year.The maximum general business credit that can be used on the consolidated return is

• A)$2,000.
• B)$6,750.
• C)$50,000.
• D)none of the above

---

Definitions:

Cash Ratio

A liquidity metric that measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.

Long-Term Debt

Debt that is due to be paid off over a period longer than one year.

Earnings Per Share

A metric that calculates the portion of a company's profit allocated to each outstanding share of common stock, indicating a company's profitability.

Treasury Stock

Shares that were issued and subsequently reacquired by the company, reducing the amount of outstanding stock on the open market.