Homework Help: Tax Planning

Posted by Danny on Monday, May 11, 2009 at 3:50pm.

Lake Michigan Inc. excluded a $125,000 discharge of indebtedness from gross income. Before the exclusion, it had had an NOL of $95,000 and a general business credit carryforward of $60,000. How much of the general business credit must be reduced?

A-$60,000
B-$30,000
C-$10,000
D-$20,000

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