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Problem 24-30 (Algorithmic) (LO. 1) Perk Corporation is subject to tax only in State A. Perk generated the following income and deductions: Federal taxable
Problem 24-30 (Algorithmic) (LO. 1) Perk Corporation is subject to tax only in State A. Perk generated the following income and deductions: Federal taxable income $1,355,000 State A income tax expense 67,750 Refund of State A income tax 13,550 Depreciation allowed for Federal tax purposes 880,750 Depreciation allowed for state tax purposes: 542,000 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. Determine Perk's State A taxable income. Perk's State A taxable income is $ 392,000 X Feedback Check My Work Although Federal tax law plays a significant role in the computation of state taxable income, there is a wide disparity in both the methods used to determine a state's taxable income and the tax rates imposed on that income.
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