Molly has generated general business credits over the years that have not been utilized.The amounts generated and not utilized follow: In the current year,2011,her business generates an additional $15,000 general business credit.In 2011,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 2011 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:  In the current year,2011,her business generates an additional $15,000 general business credit.In 2011,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 2011 is available for future years?

Quizplus · Accepted Answer

Molly has generated $11,500 of general business credits that were not utilized in previous years. In 2011, she generated an additional $15,000 of general business credit, making her total available credit $26,500 ($11,500 + $15,000).

In 2011, she can utilize up to $20,000 of her general business credit. Therefore, the remaining credit available for future years would be $6,500 ($26,500 - $20,000).

So, choice C is the correct answer.

Molly Has Generated General Business Credits Over the Years That