Question
ABC has the following data: (in thousands) Louisiana Mississippi Other Total Sales 600 300 100 1000 Payroll 80 40 0 120 Property 200 400 0
ABC has the following data: (in thousands)
Louisiana
Mississippi
Other
Total
Sales
600
300
100
1000
Payroll
80
40
0
120
Property
200
400
0
600
Their federal taxable income for the year is $500,000. Louisiana is their state of incorporation. They expanded into Mississippi 2 years ago. Additional information:
a.This income includes interest income of $15,000.
b.Federal income liability is $170,000.
1.How much does ABC have in apportionable taxable income? (10 points)
2.Assuming Louisiana has a throwback rule, how much income should be apportioned to Louisiana? To Mississippi? (10 points)
3.How does your above answer change if Louisiana doesn't have a throwback rule? (10 points)
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