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in 2020 state tax expense was overpaid by 7000 and in 2021 the 1041 return for federal added back 7000 as a refund as income. however in 2022, there was a 35,000 state overestimate payment that was credited fromprior year. why would we not add the $35,000 as a refund like prior years? is it because that 35,000 was a 2021 payment paid in 2022? this is for a 1041 trust return. please clarify

in 2020 state tax expense was overpaid by 7000 and in 2021 the 1041 return for federal added back 7000 as a refund as income. however in 2022, there was a 35,000 state overestimate payment that was credited fromprior year. why would we not add the $35,000 as a refund like prior years? is it because that 35,000 was a 2021 payment paid in 2022? this is for a 1041 trust return. please clarify

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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in 2020 state tax expense was overpaid by 7000 and in 2021 the 1041 return for federal added back 7000 as a refund as income. however in 2022, there was a 35,000 state overestimate payment that was credited fromprior year. why would we not add the $35,000 as a refund like prior years? is it because that 35,000 was a 2021 payment paid in 2022? this is for a 1041 trust return. please clarify
Transcribed Image Text:in 2020 state tax expense was overpaid by 7000 and in 2021 the 1041 return for federal added back 7000 as a refund as income. however in 2022, there was a 35,000 state overestimate payment that was credited fromprior year. why would we not add the $35,000 as a refund like prior years? is it because that 35,000 was a 2021 payment paid in 2022? this is for a 1041 trust return. please clarify
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