GinnyCo has pretax book and taxable income of $400,000 and reports a $100,000 income tax payable in
Question:
GinnyCo has pretax book and taxable income of $400,000 and reports a $100,000 income tax payable in the current year. GinnyCo has engaged in activities that it believes qualify for the research activities credit a general business tax credit of $40,000 that it cannot use this year, and its management believes that it is more likely than not that one-fourth of the credit carryforward will expire unused.
a. Compute GinnyCo's income tax provision for the year, expressed as a Microsoft Excel formula.
TAXPROV=TAX PAY-(MAX(DEFTAX,(DEFTAX-VALALL))TAXPROV=TAX PAY-(MAX(VALALL,(DEFTAX-VALALL))TAXPROV=TAX PAY-(MIN(DEFTAX,(DEFTAX-VALALL))TAXPROV=TAX PAY-(MIN(VALALL,(DEFTAX-VALALL))TAXPROV=TAX PAY-(MIN(DEFTAX,(DEFTAX-VALALL))
DEFTAX=VALALL∗UNUSED%DEFTAX=VALALL∕UNUSED%VALALL=DEFTAX∗UNUSED%VALALL=DEFTAX∕UNUSED%VALALL=DEFTAX∗UNUSED%
South-Western Federal Taxation 2022 Essentials Of Taxation Individuals And Business Entities
ISBN: 9780357519431
25th Edition
Authors: Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young, David M. Maloney