Frank Is a Resident of a State That Imposes a Tax

question 131

Multiple Choice

Frank is a resident of a state that imposes a tax on income.The following information pertaining to Frank's state income taxes is available: $\begin{array}{llcc} \text { State income taxes withhel d in 2018 } & \$3,500 \\ \text { Refund of 2015 tax received in 2018 } &\$400\\ \text {Deficiency assessed and paid in 2018 for 2016 : } &\\ \text {State tax } &\$600\\ \text {Interest } &\$100\\ \text { } &\\\end{array}$
What amount should Frank use as state and local income taxes in calculating itemized deductions for his 2018 Federal tax return, assuming he deducts state and local income taxes?

• A)$3,500
• B)$3,700
• C)$4,100
• D)$4,200
• E)None of the above

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Definitions:

Ingredients

Components or elements combined in the preparation of a particular dish or product.

Value Engineering

A systematic method to improve the "value" of goods or products and services by using an examination of function.

Product Design

The process of creating a new product to be sold by a business to its customers, involving concept development, solution sketching, prototyping, and testing.

Value Analysis

A methodical approach to identify and eliminate unnecessary costs in product design and manufacturing without sacrificing functionality or quality.