Extronic, a calendar year, accrual basis corporation, reported a $41,900 liability for accrued 2015 state income tax on its December 31, 2015, balance sheet. Extronic made the following state income tax payments during 2016:

On December 27, Extronic’s tax department calculated that the corporation’s actual 2016 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, 2017.
a. If Extronic has not adopted the recurring item exception as its method of accounting for state income tax, compute its 2016 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 2016 deduction for state income tax.

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March 8 Balance due of 2015 tax 1st estimate 2016 state tax 2nd estimate 2016 state tax $41,900 58,000 58,000 58,000 58,000 April 14 June 12 September 15 December 13 3rd estimate 2016 state tax 4th estimate 2016 state tax