Osprey Corporation, an accrual basis taxpayer, had taxable income for 2015 and paid $40,000 on its estimated

Question:

Osprey Corporation, an accrual basis taxpayer, had taxable income for 2015 and paid $40,000 on its estimated state income tax for the year. During 2015, the company received a $4,000 refund upon filing its 2014 state income tax return. The company filed its 2015 state income tax return in August 2016 and paid the $7,000 state income tax due for 2015. In December 2015, the company received a notice from the state tax commission that an additional $6,000 of income tax was due for 2013 because of an error on the return. The company acknowledged the error in December 2015 and paid the additional $6,000 in tax in February 2016. What is Osprey’s 2015 Federal income tax deduction for state income taxes?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

South Western Federal Taxation 2016 Individual Income Taxes

ISBN: 9781305393301

39th Edition

Authors: James H. Boyd, William H. Jr. Hoffman, David M. Maloney, William A. Raabe, James C. Young

Question Posted: