XPO Corporation Has a Minimum Tax Credit of $51,000 from 2015

question 71

Multiple Choice

XPO Corporation has a minimum tax credit of $51,000 from 2015. If its 2016 tentative minimum tax is $211,000 and its regular tax liability is $250,000, what is its minimum tax credit carryover to 2017?

• A) $51,000
• B) $39,000
• C) $12,000
• D)$0

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Definitions:

Breach of Warranty

The failure to fulfill the terms of a promise, guarantee, or warranty in a contract, leading to potential legal action for damages.

Repossesses

The act of a lender or seller taking back property when the borrower fails to make payments as agreed.

Prior Claim

A right or claim that takes precedence over others, having seniority in time or order of obligation.

Express Warranty

A guarantee explicitly stated by a seller about the condition or quality of a product.