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 Carol Josey Sharon Incorporated Corporation Corporation State X State Y State Z (throwback) (throwback) (nonthrowback) $ 1,490 $ 525 $ 580 60,500 75,200 21,900 15,900 60,000 65,000 12,300 46,250 15,500 59,750 20,300 28,400 93,500 15,500 55,750 13,400 12,500 7,850 28,000 43,500 3,150 Janice Corporation State Z (nonthrowback) $ 485 15,700 18,600 12,500 11,700 14,200 25,500 11,100 10,200 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.
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 Carol Josey Sharon Incorporated Corporation Corporation State X State Y State Z (throwback) (throwback) (nonthrowback) $ 1,490 $ 525 $ 580 60,500 75,200 21,900 15,900 60,000 65,000 12,300 46,250 15,500 59,750 20,300 28,400 93,500 15,500 55,750 13,400 12,500 7,850 28,000 43,500 3,150 Janice Corporation State Z (nonthrowback) $ 485 15,700 18,600 12,500 11,700 14,200 25,500 11,100 10,200 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.
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
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
Payroll:
State Y
Property: 65,000
State A
Payroll:
12,300
State X
Payroll:
State Z
Carol
Sharon
Josey
Incorporated Corporation Corporation
State Y State Z
Janice
Corporation
State Z
State X
(throwback) (throwback) (nonthrowback) (nonthrowback)
$ 1,490
$ 525
$ 580
$ 485
60,500
13,400
75,200
12,500
7,850
28,000
Payroll:
State A
21,900
15,900
60,000
46,250
15,500
59,750
20,300
28,400
93,500
15,500
55,750
43,500
3,150
15,700
18,600
12,500
11,700
14, 200
25,500
11,100
10, 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.
Transcribed Image Text:a. Calculate the State X apportionment factor for
Sharon Incorporated, Carol Corporation, Josey
Corporation, and Janice Corporation
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