Problem 12-23 (Algorithmic) (LO. 2) Oak Corporation has the following general bu
ID: 2585054 • Letter: P
Question
Problem 12-23 (Algorithmic) (LO. 2) Oak Corporation has the following general business credit carryovers: 2013 2014 2015 2016 Total carryovers $2,000 6,000 3,000 10,000 $21,000 Oak's general business credit generated by 2017 activities equals $16,800 and the total credit allowed during the current year is $24,000 (based on tax liability) a. Enter the amount (if any) of each year's carryover utilized in 2017 Amount of Carryover Utilized Year 2013 2014 2015 2016 2017 b. What is the amount of any unused credits carried forward to 2018?Explanation / Answer
Total credit allowed in 2017 is $ 24,000.
Total credit generated in 2017 is $16,800.
Firstly the credit generated in the current year will be allowed i.e: $16,800 post this the credit of previous year will be allowed on the oldest credit first and the newest credit later.
The credit of $2000 of the year 2013 will be allowed then the credit balance credit will be allowed from the year 2014 please find the below table for your information
Credit allowed in 2017 $24,000 Credit generated in 2017 $16,800 Balance credit to be allowed $7,200 Amount of carry forward of 2013 utilizez $2,000 Balance $5,200 Carry forward of year 2014 to be utilized $5,00