Pink Corporation is an accrual basis taxpayer that uses the recurring item exception to the economic performance test for all relevant years.For 2016,the corporation's income subject to state income tax was $500,000 and the state corporate tax rate was 6%.During 2016,the corporation paid $24,000 on its estimated state income tax liability for that year.The remaining $6,000 of 2016 state income tax was paid in April 2017.In June 2016,the corporation paid $9,000 on its year 2015 state income tax liability,as a result of an audit of the 2015 return that was conducted in 2016.The company has elected to use the recurring item exception to economic performance.As a result of the above,the corporation should deduct in 2016 on its Federal income tax return state income taxes of:
A)$24,000.
B)$30,000.
C)$33,000.
D)$39,000.
E)None of the above.

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The Answer of Pink Corporation is an accrual basis taxpayer that uses the recurring item exception to the economic performance test for all relevant years.For 2016,the corporation's income subject to state income tax was $500,000 and the state corporate tax rate was 6%.During 2016,the corporation paid $24,000 on its estimated state income tax liability for that year.The remaining $6,000 of 2016 state income tax was paid in April 2017.In June 2016,the corporation paid $9,000 on its year 2015 state income tax liability,as a result of an audit of the 2015 return that was conducted in 2016.The company has elected to use the recurring item exception to economic performance.As a result of the above,the corporation should deduct in 2016 on its Federal income tax return state income taxes of:
A)$24,000.
B)$30,000.
C)$33,000.
D)$39,000.
E)None of the above.

Pink Corporation Is an Accrual Basis Taxpayer That Uses the Recurring