Business Finance Assignment Collections – assignmentcollections.com
Yard Corporation, a cash basis taxpayer, received $10,000 from a customer in 2015. In 2015, the customer filed a claim for a refund of the fee. In 2016, Yard refunded the customer $6,000. In 2015, Yard paid $5,000 in estimated state income tax. In May 2016, Yard received a state income tax refund of $2,000 for overpayment of its 2015 income tax. Yard was in the 35% marginal tax bracket in 2015 and in the 15% marginal tax bracket in 2016.
What are the tax effects of the 2016 payment to the customer and the collection of the state income taxes overpaid?
Review the grading rubric in the module folder to understand how you will be assessed on this assignment.
Be sure to use references and format your entire paper according to the CSU-Global Guide to Writing and APA. Reach out to your instructor if you have questions about the assignment.