Balm, Inc., has a general business credit for 2016 of $90,000. Balm's regular income tax liability before
Question:
a. Calculate the amount of general business credit Balm can use in 2016, and calculate its general business credit carryback and carryforward, if any.
b. Balm projects a $140,000 regular 2017 income tax liability. Its tentative AMT will be $132,000. Balm is considering making an investment early in 2017 that annually will produce $45,000 of tax-exempt income. Balm is trying to decide between two alternatives. The first alternative is a tax-exempt bond that is a 2014 private activity bond. The second alternative is a tax-exempt bond that is not a private activity bond. Advise Balm on the preferable investment.
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Step by Step Answer:
a The limitation on the general business credit that is allowed for 2016 is calculated as follows Ne...View the full answer
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Related Book For 
South Western Federal Taxation 2017 Essentials Of Taxation Individuals And Business Entities
ISBN: 9780357109144
20th Edition
Authors: William A. Raabe, David M. Maloney, James C. Young, Annette Nellen
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