Osprey Corporation, an accrual basis taxpayer, had taxable income for 2016 and paid $40,000 on its estimated state income tax for the year. During 2016, the company received a $4,000 refund upon filing its 2015 state income tax return. The company filed its 2016 state income tax return in August 2017 and paid the $7,000 state income tax due for 2016. In December 2016, the company received a notice from the state tax commission that an additional $6,000 of income tax was due for 2014 because of an error on the return. The company acknowledged the error in December 2016 and paid the additional $6,000 in tax in February 2017. What is Osprey’s 2016 Federal income tax deduction for state income taxes?

Suppose that jim plans to borrow money for an education at texas a& m university. jim will need to borrow $25,000 at the end of each year for the next five years (total=$125,000). jim wishes his parents could pay for his education but they can’t. at least, he qualifies for government loans with a reduced interest rate while he is in school. he has a special arrangement with aggiebank to lend him the money at a subsidized rate of 1% over five years without having to make a payment until the end of the fifth year. however, at the end of the fifth year, jim agrees to pay off the loan by borrowing from longhorn bank. longhorn bank will lend him the money he needs at an annual interest rate of 6%. jim agrees to pay back the longhorn bank with 20 annual payments and the payments will be uniform (equal annual payments including principal and interest). (i) calculate how much money jim has to borrow at the end of 5 years to pay off the loan with aggiebank. a. $121,336 b. $127,525 c. $125,000 d. $102,020 e. none of the above