An Accrual Basis Taxpayer That Accrues a Liability at Year-End

question 39

True/False

An accrual basis taxpayer that accrues a liability at year-end for unpaid state income tax can deduct the accrued tax expense in the computation of federal taxable income.

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Definitions:

Aqueous Humor

A transparent, watery fluid found in the anterior and posterior chambers of the eye, providing nutrients and maintaining intraocular pressure.

Optic Nerve

A paired nerve that transmits visual information from the retina to the brain, playing a critical role in the sense of sight.

Visual Acuity

The clarity or sharpness of vision, often measured in terms of the ability to discern letters or numbers at a standardized distance.

Posterior Cavity

The back part of the body cavity that houses the brain and spinal cord in vertebrates, also known as the dorsal body cavity.