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1 . Ramirez Corporation is subject to tax only in State A. Ramirez generated the following income and deductions. Federal taxable income $500,000 State A
1. Ramirez Corporation is subject to tax only in State A. Ramirez generated the following income and deductions.
Federal taxable income | $500,000 |
State A income tax expense deducted on the Federal return | 45,000 |
Depreciation allowed for Federal tax purposes | 300,000 |
Depreciation allowed for state tax purposes | 250,000 |
Federal taxable income is the starting point in computing State A taxable income. Ramirezs A taxable income is:
a. | $495,000. |
b. | $500,000. |
c. | $545,000. |
d. | $595,000. |
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