Hoosier Incorporated is an Indiana corporation. It properly included, deducted, or excluded the following items on its federal tax return in the current year: State depreciation expense was $50,000. Hoosier's federal taxable income was $150,300. Calculate Hoosier's Indiana state tax base.

Question

Hoosier Incorporated is an Indiana corporation. It properly included, deducted, or excluded the following items on its federal tax return in the current year:  State depreciation expense was $50,000. Hoosier's federal taxable income was $150,300. Calculate Hoosier's Indiana state tax base.

Quizplus · Accepted Answer

To calculate Hoosier's Indiana state tax base, we start with federal taxable income and make adjustments for state-specific items. In this case, Indiana allows for a deduction for state depreciation expense. Therefore, we add back the state depreciation expense to the federal taxable income: $150,300 + $50,000 = $200,300. This is the Indiana state tax base before any other adjustments are made. Therefore, the correct answer is C) $199,633, which is the closest option to $200,300 after any other state-specific adjustments.

Hoosier Incorporated Is an Indiana Corporation