Required information[The following information applies to the questions displayed below.]Sharon Incorporated is headquartered in State X and owns 100 percent of Carol Corporation, Josey Corporation, andJanice Corporation, which form a single unitary group. Assume sales operations are within the solicitation bounds of PublicLaw 86-272. Each of the corporations has operations in the following states:Domicile StateDividend incomeBusiness incomeSales: State XSales: State YSales: State ZSales: State ASales: State BProperty: State XProperty: State YProperty: State ZProperty: State APayroll: State xPayroll: State YPayroll: State ZPayroll: State ABusiness IncomeCarolSharonJoseyIncorporated Corporation CorporationState XState YState Z(throwback) (throwback) (nonthrowback)$1,830$ 525$ 59514, 20046,50078,500State X$ 72,15029,30016,90069,50065,75014,500b. Calculate the business income apportioned to State X.43,25018,50052,50020, 20021,60086,50017,90055, 25014,3006,85039,75040,5006,200JaniceCorporationState z(nonthrowback)$53019,50016,10014,50018,40012, 200Compute the following for State X assuming a tax rate of 15 percent.Note: Use an equally weighted three-factor apportionment. Round all apportionment factors to 4 decimal places.Round other answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.20,75015,40019,400

Under the solicitation bounds of Public Law 86-272, the business income should be assigned to the…

Sharon Incorporated is headquartered in State X and owns 100 percent of Carol Corporation, Josey Corporation, and Janice Corporation, which form a single unitary group. Assume sales operations are within the solicitation bounds of Public Law 86-272. Each of the corporations has operations in the following states: Domicile State Sharon Carol Josey Incorporated Corporation Corporation State X State Y (throwback) State z (throwback) (nonthrowback) $ 1,830 $ 595 $ 525 46,500 14, 200 78,500 Dividend income Business income Sales: State X Sales: State Y Sales: State Z Sales: State A Sales: State B Property: State X Property: State Y Property: State Z Property: State A Payroll: State x Payroll: State Y Payroll: State Z Payroll: State A Compute the following for State X assuming a tax rate of 15 percent. 29, 300 16,900 69,500 65,750 14,500 43,250 18,500 52,500 20, 200 21,600 86,500 17,900 55,250 14,300 6,850 39,750 40,500 6,200 Janice Corporation State z (nonthrowback) $ 530 19,500 16,100 14,500 18,400 12,200 20,750 15,400 19,400

Sharon Incorporated is headquartered in State X and owns 100 percent of Carol Corporation, Josey Corporation, and Janice Corporation, which form a single unitary group. Assume sales operations are within the solicitation bounds of Public Law 86-272. Each of the corporations has operations in the following states: Domicile State Sharon Carol Josey Incorporated Corporation Corporation State X State Y (throwback) State z (throwback) (nonthrowback) $ 1,830 $ 595 $ 525 46,500 14, 200 78,500 Dividend income Business income Sales: State X Sales: State Y Sales: State Z Sales: State A Sales: State B Property: State X Property: State Y Property: State Z Property: State A Payroll: State x Payroll: State Y Payroll: State Z Payroll: State A Compute the following for State X assuming a tax rate of 15 percent. 29, 300 16,900 69,500 65,750 14,500 43,250 18,500 52,500 20, 200 21,600 86,500 17,900 55,250 14,300 6,850 39,750 40,500 6,200 Janice Corporation State z (nonthrowback) $ 530 19,500 16,100 14,500 18,400 12,200 20,750 15,400 19,400

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter16: Multijurisdictional Taxation

Section: Chapter Questions

Problem 3CE

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