Pink Corporation is an accrual basis taxpayer that uses the recurring item exception to the economic performance test for all relevant years. For 2017, the corporation's income subject to state income tax was $500,000 and the state corporate tax rate was 6%. During 2017, the corporation paid $24,000 on its estimated state income tax liability for that year. The remaining $6,000 of 2017 state income tax was paid in April 2018. In June 2017, the corporation paid $9,000 on its year 2016 state income tax liability, as a result of an audit of the 2016 return that was conducted in 2017. The company has elected to use the recurring item exception to economic performance. As a result of the above, the corporation should deduct in 2017 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 2017, the corporation's income subject to state income tax was $500,000 and the state corporate tax rate was 6%. During 2017, the corporation paid $24,000 on its estimated state income tax liability for that year. The remaining $6,000 of 2017 state income tax was paid in April 2018. In June 2017, the corporation paid $9,000 on its year 2016 state income tax liability, as a result of an audit of the 2016 return that was conducted in 2017. The company has elected to use the recurring item exception to economic performance. As a result of the above, the corporation should deduct in 2017 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