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apportionment formula and has a 6 percent state tax rate. State B uses an apportionment formula that double-weights the sales factor and has a 5.5
apportionment formula and has a 6 percent state tax rate. State B uses an apportionment formula that double-weights the sales factor and has a 5.5 percent state tax rate. Cromwell's state-level taxable income, before apportionment, is $3.1 million. It has identified the following components of its sales, payroll, and property factors: Required: a. Calculate Cromwell's apportionment factors, income apportioned to each state, and state tax liability. b. State B is considering changing its apportionment formula to place 100 percent of the weight on the sales factor, ignoring payroll and property for apportionment purposes. Given its current levels of activity, what would Cromwell's state tax liability be for each state? Complete this question by entering your answers in the tabs below
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