In the current year, Harden Corporation has $700,000 of regular taxable income, $60,000 of tax preference items,

Question:

In the current year, Harden has $700,000 of regular taxable income, $60,000 of tax preference items, $140,000 of net positive AMT adjustment items (other than the ACE adjustment), and $1 million of adjusted current earnings. Harden’s only available tax credit is a $45,000 general business credit relating to research expenditures.
a. What is Harden’s AMT for the current year?
b. What amount of general business credit may Harden claim for the current year?
c. To what year(s) may Harden carry any unused general business credit from the current year?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...