Question details

Calculate the State X apportionment factor for Sharon Inc.,
$ 20.00

Sharon Inc. is headquartered in State X and owns 100 percent of Carol, Josey, and Janice Corps, 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 Inc.
State X
(throwback)
Carol Corp
State Y
(throwback)
Josey Corp
State Z
(nonthrowback)
Janice Corp
State Z
(nonthrowback)
  Dividend income $ 1,030     $ 560    $ 420     $ 400    
  Business income $ 40,000     $ 45,250    $ 16,400     $ 16,200    
  Sales: State X $ 83,200     $ 19,500    $ 11,900     $ 12,200    
            State Y     $ 50,750    $ 9,350        
            State Z     $ 30,000    $ 39,000     $ 11,900    
            State A $ 34,000                 
            State B $ 15,500             $ 11,500    
  Property: State X $ 70,500     $ 27,400        $ 10,200    
                State Y     $ 102,250           
                State Z         $ 42,000     $ 30,500    
                State A $ 69,500                
  Payroll: State X $ 17,600     $ 14,500           
              State Y     $ 63,250           
              State Z         $ 5,100     $ 13,400    
              State A             $ 16,000    

Compute the following for State X assuming a tax rate of 15 percent. (Be sure to use an equally weighted three-factor apportionment formula. Round your apportionment factors to 4 decimal places. Also round your apportioned business income and tax liability to the nearest dollar amount.)

a.

Calculate the State X apportionment factor for Sharon Inc., Carol Corp., Josey Corp., and Janice Corp.

b.

Calculate the business income apportioned to State X.

 

c.

Calculate the taxable income for State X for each company.

 

d.

Determine the tax liability for State X for the entire group.
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