Extronic, a calendar year, accrual Basis Corporation, reported a $41,900 liability for accrued 2014 state income tax
Question:
On December 27, Extronics tax department calculated that the corporations actual 2015 state income tax liability was $251,200. Consequently, Extronic accrued a $19,200 liability for state tax payable at year-end. Extronic paid this balance due on March 11, 2016.
a. If Extronic has not adopted the recurring item exception as its method of accounting for state income tax, compute its 2015 deduction for state income tax.
b. If Extronic has adopted the recurring item exception as its method of accounting for state income tax, compute its 2015 deduction for state income tax.
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Related Book For
Principles Of Taxation For Business And Investment Planning 2016 Edition
ISBN: 9781259549250
19th Edition
Authors: Sally Jones, Shelley Rhoades Catanach
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