Holt Industries, Inc. does business in State 1. That state uses federal taxable income as the starting point for calculating state income tax. Interest on state obligations is taxed, but interest on federal obligations is not taxed. Only straight-line depreciation may be deducted. 

Holt Industries' income and expenses for the year are: Sales $200,000 Interest income on federal obligations $4,000 Interest income on state obligations $5,000 State taxes $10,000 MACRS $15,000 (straight-line depreciation) $8,000 Cost of sales $60,000 Other business expenses $20,000 what is holt industries taxable income?

Answer rating: 100% (QA)

Holt Industries taxable income for the year can be calculated as follows Federal taxable income Sale... View the full answer