Spartanburg Corporation is subject to tax only in State A. Spartanburg generated the following income and deductions: Federal taxable income $640,000 State A income tax expense 28,000 Warranty expense allowed for Federal tax purposes 30,000 Warranty expense allowed for state tax purposes 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. I

n addition, Spartanburg received a Federal income tax refund of $12,500. Spartanburg's State A taxable income is $