Federal income tax allows a deduction for any state income tax
paid during the year. In addition, the state of Alabama allows a
deduction from its state income tax for any federal income tax paid
during the year.
The federal corporate income tax is equivalent to a flat rate of
34% of the taxable federal income and the Alabama rate is 5% of the
taxable state income. Both the federal and Alabama taxable income
for a certain corporation are $1,000,000...