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:

Ground Meristem

The part of a plant embryo that develops into the ground tissue of the plant, which includes the cortex and pith.

Procambium

A primary meristematic tissue in plants, which differentiates into vascular tissues (xylem and phloem).

Primary Xylem

The part of the xylem (the vascular tissue in plants that conducts water and dissolved nutrients upward from the root) that forms first, mainly in seedlings and young plants.

Secondary Xylem

The part of a plant that contributes to the growth of stem thickness and acts as a conduit for water and nutrients.