Lyn Corporation has its manufacturing, distribution, and retail operations in State 1. However, sales are made to
Question:
Lyn Corporation has its manufacturing, distribution, and retail operations in State 1. However, sales are made to customers in States 1, 2, and 3. Sales in State 1 are made through retail stores. Sales in State 2 are obtained by Lyn’s sales representatives who have the authority to accept and approve sales orders.
Customers in State 3 can purchase Lyns products only if they arrange to take delivery at Lyn’s shipping dock. Lyn’s sales, by state, were as follows: \($650K\) to residents of State 1; S400K to residents of State 2; and \($150K\) to residents of State 3.
Lyn’s activities in the three states were limited to the aforementioned. All states use an equally weighted three-factor formula and have a throwback rule.
State 1 sources dock sales to the destination state. Determine Lyn’s sales factor for all three states.
Step by Step Answer:
State And Local Taxation Principles And Practices
ISBN: 9781604270952
3rd Edition
Authors: Sanjay Gupta, John Karayan, Joseph Neff, Charles Swenson