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)