Marchal Inc., a calendar year, accrual basis taxpayer, made the following state income tax payments during 2015.
a. Compute Marchal's 2015 state income tax expense per books.
b. If Marchal has not adopted the recurring item exception as its method of accounting for state income taxes, compute Marchal's 2015 federal deduction for state income tax.

Question

Marchal Inc., a calendar year, accrual basis taxpayer, made the following state income tax payments during 2015.
  a. Compute Marchal's 2015 state income tax expense per books.
b. If Marchal has not adopted the recurring item exception as its method of accounting for state income taxes, compute Marchal's 2015 federal deduction for state income tax.

Quizplus · Accepted Answer

The Answer of Marchal Inc., a calendar year, accrual basis taxpayer, made the following state income tax payments during 2015.
  a. Compute Marchal's 2015 state income tax expense per books.
b. If Marchal has not adopted the recurring item exception as its method of accounting for state income taxes, compute Marchal's 2015 federal deduction for state income tax.