1. Calculate the Brewers State U taxable liability in State U for the current year:

Addition Modifications $ 79,000

Apportionment percentage State U 33.33%

Credits $ 900

Federal Taxable Income $390,000 *

Subtraction modifications $ 14,000

State U corporate tax rate 5%

* Federal income included the following allocated income

$ 5,000 to State U

20,000 to State W

100,000 to State X

$125,000

State U Tax Liability $____________