Problem 24-29 (a) (LO. 1) Spartanburg Corporation is subject to tax only in State A. Spartanburg generated the following Federal taxable income $640,000 State A income tax expense Warranty expense allowed for Federal tax purposes Warranty expense allowed for state tax purposes 28,000 30,000 50,000 Federal taxable income is the starting point in computing State A's taxable income. State income taxes are not deductible for State A's tax purposes. In addition, Spartanburg received a Federal income tax refund of $12,500. Spartanburg's State A taxable income is $