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An accrual basis corporation had $11,474 of taxable income before deducting charitable ontributions and before deducting state income tax expense. The corpo charitable contributions, howeverthe

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An accrual basis corporation had $11,474 of taxable income before deducting charitable ontributions and before deducting state income tax expense. The corpo charitable contributions, howeverthe allowed deduction is limited to 10% of taxable income after deducting state income tax, but before deducting the allowed contributions. The state income tax is 35% of taxable income deducting the state income tax. (Yes, they are interdependent.) The federal tax is taxable income after deducting both the allowed contributions and the state income tax. Required: Fill in the blanks with the correct amounts rounded to the nearest dollar. ration made $2,000 in atter deducting the allowed contributions, but before 15% of (A) Fed. taxable income before deducting allowed contributions & state tax (B) Allowed charitable contributions [(A)-(C)] x 10% (C) State income tax [(A)-(B)] x 3.5% (D) Federal taxable income (A) - (B)-(C) 11,474 (E) Federal Income Tax (D) x 15%

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