Yard Corporation,a cash basis taxpayer,received $10,000 from a customer in 2015.In 2015,the customer filed a claim for a refund of the fee.In 2016,Yard refunded the customer $6,000.In 2015,Yard paid $5,000 in estimated state income tax.In May 2016,Yard received a state income tax refund of $2,000 for overpayment of its 2015 income tax.Yard was in the 35% marginal tax bracket in 2015 and in the 15% marginal tax bracket in 2016.What are the tax effects of the 2016 payment to the customer and the collection of the state income taxes overpaid?

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The Answer of Yard Corporation,a cash basis taxpayer,received $10,000 from a customer in 2015.In 2015,the customer filed a claim for a refund of the fee.In 2016,Yard refunded the customer $6,000.In 2015,Yard paid $5,000 in estimated state income tax.In May 2016,Yard received a state income tax refund of $2,000 for overpayment of its 2015 income tax.Yard was in the 35% marginal tax bracket in 2015 and in the 15% marginal tax bracket in 2016.What are the tax effects of the 2016 payment to the customer and the collection of the state income taxes overpaid?

Yard Corporation,a Cash Basis Taxpayer,received $10,000 from a Customer in 2015.In