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

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The general business credit is limited to the net income tax minus the greater of the tentative minimum tax or 25% of the net regular tax liability that exceeds $25,000. Here, 25% of ($400,000 - $25,000) is $93,750. Since $80,000 is less than $93,750, the full tentative credit of $80,000 can be used. However, the maximum credit is limited to $69,250, calculated as $400,000 - $330,750 (which is $25,000 + $93,750).

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