Hanlon, Inc., a calendar year corporation, reported the following state income tax expense amounts on its current year GAAP income statement: Current state income tax expense $ 7,000 Deferred state income tax expense $ 5,000 Total state income tax expense per books $12,000 The current state income tax expense is the amount of state income tax that Hanlon will report and pay on its income tax return for the current year. Hanlon's beginning balance sheet reflected a $1,000 liability for current state income taxes payable. That beginning liability was paid on July 31st of the current year. This year, the liability account increased by the $7,000 (the current expense amount) and decreased by $6,500 of state income tax payments. The $500 ending balance in this account was paid on July 11th of the following year. The deferred state income tax expense is the future state income taxes that has not yet been incurred but will be incurred on future taxable income that will result from the reversal of taxable temporary differences (e.g., such as higher future taxable income from deferred gain on an installment sale). 3a: How much state income tax may Hanlon deduct on its federal return in the