Extronic, a calendar year, accrual Basis Corporation, reported a $41,900 liability for accrued 2014 state income tax on its December 31, 2014, balance sheet. Extronic made the following state income tax payments during 2015: On December 27, Extronic’s tax department calculated that the corporation’s actual 2015 state income tax liability was $251,200. Consequently, Extronic accrued a $19,200 liability for state tax payable at year-end. Extronic paid this balance due on March 11, 2016. a. If Extronic has not adopted the recurring item exception as its method of accounting for state income tax, compute its 2015 deduction for state income tax. b. If Extronic has adopted the recurring item exception as its method of accounting for state income tax, compute its 2015 deduction for state income tax.
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