Yard Corporation,a cash basis taxpayer,received $10,000 from a customer in 2010.In 2010,the customer filed a claim for a refund of the fee.In 2011,Yard refunded the customer $6,000.In 2010,Yard paid $5,000 in estimated state income tax.In May 2011,Yard received a state income tax refund of $2,000 for overpayment of its 2010 income tax.Yard was in the 35% marginal tax bracket in 2010 and in the 15% marginal tax bracket in 2011.What are the tax effects of the 2011 payment to the customer and the collection of the state income taxes overpaid?

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The Answer of Yard Corporation,a cash basis taxpayer,received $10,000 from a customer in 2010.In 2010,the customer filed a claim for a refund of the fee.In 2011,Yard refunded the customer $6,000.In 2010,Yard paid $5,000 in estimated state income tax.In May 2011,Yard received a state income tax refund of $2,000 for overpayment of its 2010 income tax.Yard was in the 35% marginal tax bracket in 2010 and in the 15% marginal tax bracket in 2011.What are the tax effects of the 2011 payment to the customer and the collection of the state income taxes overpaid?

Yard Corporation,a Cash Basis Taxpayer,received $10,000 from a Customer in 2010.In