For the year ended December 31, 2007, Maple Corp.’s book income, before federal income tax, was $100,000. Included in this $100,000 were the following:
|
Provision for state income tax |
$1,000 |
|
Interest earned on US Treasury Bonds |
6,000 |
|
Interest expense on bank loan to purchase US Treasury Bonds |
2,000 |
Maple’s taxable income for 2007 was
- $ 96,000
- $ 97,000
- $100,000
- $101,000
C