PWD Incorporated Is an Illinois Corporation PWD's Federal Taxable Income Was $100,000

question 75

Multiple Choice

PWD Incorporated is an Illinois corporation. It properly included, deducted, or excluded the following items on its federal tax return in the current year: $$\begin{array} { l r l } \text { Item } & { \text { Amount } } { } & \text { Federal Treatment } \\\hline\text { Illinois Income Taxes } & \$ 33,333 & \text { Deducted on federal return } \\\text { Indiana Income Taxes } & \$ 18,500 & \text { Deducted on federal return } \\\text { Ohio Commercial Activity Tax } & \$ 4,000 & \text { Deducted on federal return } \\\text { Illinois Bond Interest } & \$ 10,000 & \text { Excluded from federal return } \\\text { Indiana Bond Interest } & \$ 15,000 & \text { Excluded from federal return } \\\text { Federal T-Note Interest } & \$ 2,500 & \text { Included on federal return }\end{array}$$ PWD's Federal Taxable Income was $100,000. Calculate PWD's Illinois state tax base.

• A) $116,000
• B) $130,833
• C) $131,000
• D) $140,833

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Definitions:

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The feeling of pleasure or satisfaction that comes from fulfilling a desire or need.

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A central element of Sigmund Freud's psychoanalytic theory, which proposes that children pass through a series of stages centered on erogenous zones.

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A psychoanalytic term for a period in child development from about age five to puberty during which sexual urges are inactive.

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