ABC Corporation is subject to tax in California and no other state. Its federal taxable income is $1,200,000. Its federal depreciation is $200,000 but the state allows depreciation of $100,000. On the federal return $50,000 of state income taxes were deducted. A federal jobs credit of $150,000 was claimed on the federal income tax return. No California jobs credit was allowed. For federal income tax purposes the salaries expense deduction was decrease by the amount of the credit. What is ABC Corporation's state taxable income

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To determine ABC Corporations state taxable income we need to apply the relevant state tax laws and ... View the full answer