9. LO.2 Osprey Corporation, an accrual basis taxpayer, had taxable income for 2013 and paid $40,000 on

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9. LO.2 Osprey Corporation, an accrual basis taxpayer, had taxable income for 2013 and paid $40,000 on its estimated state income tax for the year. During 2013, the company received a $4,000 refund upon filing its 2012 state income tax return. The company filed its 2013 state income tax return in August 2014 and paid the $7,000 state income tax due for 2013. In December 2013, the company received a notice from the state tax commission that an additional $6,000 of income tax was due for 2011 because of an error on the return. The company acknowledged the error in December 2013 and paid the additional

$6,000 in tax in February 2014. What is Osprey’s 2013 Federal income tax deduction for state income taxes?

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South-Western Federal Taxation 2014 Corporations Partnerships Estates And Trusts

ISBN: 9781285424484

37th Edition

Authors: William H. Hoffman Jr., William A. Raabe, James E. Smith, David M. Maloney, James C. Young

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