Question
Citrine Corporation is subject to a corporate income tax only in State X. The starting point in computing X taxable income is Federal taxable income.
Citrine Corporation is subject to a corporate income tax only in State X. The starting point in computing X taxable income is Federal taxable income. Citrine's Federal taxable income is $400,000, which includes a $55,000 deduction for state income taxes. During the year, Citrine received $150,000 interest on Federal obligations and $65,000 of interest on State Z obligations. X does not allow a deduction for state income tax payments, but it does exclude interest earned on its own obligations. Required: Prepare a schedule in Good Form that determines Citrine's taxable income for State X purposes. All items should be labeled.
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