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 Illinois 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 Illinois state tax base.

Quizplus · Accepted Answer

To calculate the Illinois state tax base, we need to start with the federal taxable income as a base and make certain adjustments. Since Hoosier Incorporated is an Indiana Corporation, we need to exclude the state depreciation expense from the federal taxable income before calculating the Illinois state tax base.

Illinois State Tax Base = Federal Taxable Income - State Depreciation Expense
= $150,300 - $50,000
= $100,300

Next, we need to add back any state taxes deducted on the federal return, as they are not deductible for Illinois state tax purposes. However, there is no information provided that suggests any state tax was deducted on the federal return.

Therefore, the Illinois state tax base is $100,300.

Finally, we need to add back any non-business interest and dividends received, as they are taxable in Illinois. However, no such information is provided.

Therefore, the answer is C) $204,633.

Hoosier Incorporated Is an Indiana Corporation