HippCo Federal taxable income for the year is $1,000,000. Its operations are confined to Oregon and Montana. HippCo generates only business and interest income for the year.

Federal cost recovery deductions totaled $200,000. Montana used this amount, but Oregon allowed only $120,000.

Interest income of $25,000 from Oregon bonds was excluded from Federal taxable income. Oregon taxes all municipal bond income, while Montana taxes all such interest except that from its own bonds.

Interest income from Treasury bonds that was recognized on the Federal return came to $11,000. Neither state taxes such income.

Oregon's state taxable income is $___________ and Montana's state taxable income is $__________.

Answer rating: 100% (QA)

Oregons Federal taxable income 1000000 Cost recovery 2000001... View the full answer