Epworth Corporation is subject to tax only in State A. Epworth generated the following income...
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Accounting
Epworth Corporation is subject to tax only in State A. Epworth generated the following income and deductions:
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Federal taxable income is the starting point in computing State A's taxable income. State income taxes are not deductible for State A's tax purposes. In addition, Epworth deducts $1,200 as a dividends received deduction on its Federal return. State A does not allow such as deduction.
Epworth's State A taxable income is $
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