Discussion Question 18-9 (Algorithmic) (LO. 2)
Osprey Corporation, an accrual basis taxpayer, reported taxable income for 2024 and paid 135,000 on its estimated state income tax for
the year. During 2024 the company received a 13,500 refund upon filing its 2023 state income tax return. The company filed its 2024
state income tax return in August 2025 and paid the 33,750 state income tax due for 2024. In December 2024, Osprey recelved a notice
from the state tax commission that an additional 20,250 of income tax was due for 2022 because of an error on the return. The company
acknowledged the error in December 2024 and paid the additional 20,250 tax in February 2025.
What is Osprey's 2024 Federal Income tax deduction for state income taxes?