Brad,who Uses the Cash Method of Accounting,lives in a State

question 68

Multiple Choice

Brad,who uses the cash method of accounting,lives in a state that imposes an income tax (including withholding from wages) .On April 14,2010,he files his state return for 2009,paying an additional $600 in state income taxes.During 2010,his withholdings for state income tax purposes amount to $3,550.On April 13,2011,he files his state return for 2010 claiming a refund of $800.Brad receives the refund on August 3,2011.If he itemizes deductions,how much may Brad claim as a deduction for state income taxes on his Federal income tax return for calendar year 2010 (filed in April 2011) ?

• A)$3,350.
• B)$3,550.
• C)$4,150.
• D)$5,150.
• E)None of the above.

---

Definitions:

Wages And Salaries

Payments made to employees for their labor, either on an hourly (wages) or periodic basis (salaries).

Planning Budget

A financial plan that estimates future income, expenses, and resources over a specific period, often used for guiding business decisions.

Tenant-Days

A measure used in real estate to quantify the aggregate number of days units are occupied by tenants over a specified period.

Administrative Expenses

Costs related to the general operation of a company that are not directly tied to a specific business activity, including salaries of office staff, depreciation of office equipment, and utilities.