Prior to the effect of tax credits,Clarence's regular income tax liability is $200,000 and his tentative AMT is $180,000.Clarence holds nonrefundable business tax credits of $35,000.His tax liability is $165,000.

Question

Quizplus · Accepted Answer

It is not accurate to say that his tax liability is $165,000 prior to the effect of tax credits, as the question only provided information on his regular income tax liability and tentative AMT. The effect of the tax credits should be taken into account to determine his actual tax liability.

Prior to the Effect of Tax Credits,Clarence's Regular Income Tax