Molly has generated general business credits over the years that have not been utilized.The amounts generated and not utilized follow: $$\begin{array} { l l }
2009 & 52,500 \
2010 & 7,500 \
2011 & 5,000 \
2012 & 4,000
\end{array}$$ In the current year,2013,her business generates an additional $15,000 general business credit.In 2013,based on her tax liability before credits,she can utilize a general business credit of up to $20,000.After utilizing the carryforwards and the current year credits,how much of the general business credit generated in 2013 is available for future years?

Question

Molly has generated general business credits over the years that have not been utilized.The amounts generated and not utilized follow: $$\begin{array} { l l } 
2009 & 52,500 \
2010 & 7,500 \
2011 & 5,000 \
2012 & 4,000
\end{array}$$ In the current year,2013,her business generates an additional $15,000 general business credit.In 2013,based on her tax liability before credits,she can utilize a general business credit of up to $20,000.After utilizing the carryforwards and the current year credits,how much of the general business credit generated in 2013 is available for future years?

Quizplus · Accepted Answer

Molly has previously generated general business credits that have not been utilized. However, the question does not provide us with the amount of previous credits.

In 2013, Molly's business generates an additional $15,000 general business credit, and she can utilize a general business credit of up to $20,000. Therefore, Molly can utilize a total of $20,000 in general business credit ($15,000 from the current year and an additional $5,000 from her carryforward credits).

Since she can utilize the entire $15,000 general business credit generated in 2013, none of it is available for future years. Therefore, the amount of general business credit available for future years is $0. The only choice that reflects this answer is C.

Molly Has Generated General Business Credits Over the Years That 200952,50020107,50020115,00020124,000\begin{array} { l l } 2009 & 52,500 \\2010 & 7,500 \\2011 & 5,000 \\2012 & 4,000\end{array}2009201020112012​52,5007,5005,0004,000​

Molly Has Generated General Business Credits Over the Years That $\begin{array} { l l } 2009 & 52,500 \\2010 & 7,500 \\2011 & 5,000 \\2012 & 4,000\end{array}$