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 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 Sharon Carol Josey Incorporated Corporation Corporation Janice Corporation State X State Y State Z State Z (throwback) (throwback) (nonthrowback) (nonthrowback) $ 1,830 $ 595 $ 525 $530 46,500 78,500 Business Income 29,300 16,900 69,500 State X 65,750 14,500 b. Calculate the business income apportioned to State X. 43,250 18,500 52,500 20,200 21,600 86,500 17,900 55,250 14,200 14,300 6,850 39,750 40,500 6,200 19,500 16,100 14,500 18,400 12,200 Compute 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. 20,750 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 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 Sharon Carol Josey Incorporated Corporation Corporation Janice Corporation State X State Y State Z State Z (throwback) (throwback) (nonthrowback) (nonthrowback) $ 1,830 $ 595 $ 525 $530 46,500 78,500 Business Income 29,300 16,900 69,500 State X 65,750 14,500 b. Calculate the business income apportioned to State X. 43,250 18,500 52,500 20,200 21,600 86,500 17,900 55,250 14,200 14,300 6,850 39,750 40,500 6,200 19,500 16,100 14,500 18,400 12,200 Compute 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. 20,750 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
Related questions
Question
K68.
Transcribed Image Text: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
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
Sharon
Carol
Josey
Janice
Incorporated Corporation Corporation Corporation
State XI
State Y
State Z
State Z
(throwback) (throwback) (nonthrowback) (nonthrowback)
$ 1,830
$ 595
$ 525
$530
Business Income
46,500
78,500
State X
29,300
16,900
69,500
65,750
14,500
b. Calculate the business income apportioned to State X.
43,250
18,500
52,500
20,200
21,600
86,500
17,900
55,250
14,200
14,300
6,850
39,750
40,500
6,200
19,500
16,100
14,500
Compute 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.
18,400
12,200
20,750
15,400
19,400
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