Perk Corporation is subject to tax only in State A. Perk generated the following income and deductions. Federal taxable income $300,000 State A income tax expense 15,000 Refund of State A income tax 3,000 Depreciation allowed for Federal tax purposes 200,000 Depreciation allowed for state tax purposes 120,000 Federal taxable income is the starting point in computing State A taxable income. State income taxes are not deductible for State A tax purposes. Determine Perk’s State A taxable income.
Perk Corporation is subject to tax only in State A. Perk generated the following income and deductions.
Federal taxable income $300,000
State A income tax expense 15,000
Refund of State A income tax 3,000
Depreciation allowed for state tax purposes 120,000
Federal taxable income is the starting point in computing State A taxable income. State income taxes are not deductible for State A tax purposes. Determine Perk’s State A taxable income.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
