Perk Corporation is subject to tax only in State A. Perk generated the following income and deductions.
|
Federal taxable income |
$300,000 |
|
State A income tax expense |
15,000 |
|
Refund of State A income tax |
3,000 |
|
Depreciation allowed for Federal tax purposes |
200,000 |
|
Depreciation allowed for state tax purposes |
120,000 |
Federal taxable income is the starting point in computing A taxable income. State income taxes are not deductible for A tax purposes. Determine Perk’s A taxable income.