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.

---

Definitions:

Opportunity Cost

The dismissal of prospective benefits from other opportunities by settling on one choice.

Microchip

A small semiconductor device containing integrated circuits used for various electronics and computing functions.

Tire(s)

Rubber-based components fitted around the rims of vehicle wheels to provide traction, support the vehicle load, and absorb shock from the road.

Autarky

A situation where a country or economy is self-sufficient and does not engage in international trade or relies on imports.