Problem 10-30 (LO. 4) Nichole, who is single and uses the cash method of accounting, lives in a state that imposes an income tax. In April 2021, she files her state income tax return for 2020 and pays an additional $1,000 in state income taxes. During 2021, her withholdings for state income tax purposes amount to $7,400, and she pays estimated state income tax of $700. In April 2022, she files her state income tax return for 2021, claiming a refund of $1,800. Nichole receives the refund in August 2022. Nichole has no other state or local tax expenses. If an amount is zero, enter "O". a. Assuming that Nichole itemized deductions in 2021, how much may she claim as a deduction for state income taxes on her Federal return for calendar year 2021 (filed April 2022)? b. Assuming that Nichole itemized deductions in 2021 (which totaled $20,000), how will the refund of $1,800 that she received in 2022 be treated for Federal income tax purposes? Nichole will include $ as income in 2022. c. Assume that Nichole itemized deductions in 2021 (which totaled $20,000) and that she elects to have the $1,800 refund applied toward her 2022 state income tax liability. How will the $1,800 be treated for Federal income tax purposes? Nichole will includes as income in 2022. d. Assuming that Nichole did not itemize deductions in 2021, how will the refund of $1,800 received in 2022 be treated for Federal income tax purposes? Nichole will includes as income in 2022