Question
Carmen Motors, Inc. does business in three states. Its state taxable income is $1,000,000. State 1 uses the UDITPA apportionment formula. State 2 doubles the
Carmen Motors, Inc. does business in three states. Its state taxable income is $1,000,000. State 1 uses the UDITPA apportionment formula. State 2 doubles the sales factor. State 3 uses only the sales factor. Given the following information, what is the companys income tax liability in those three states?
| Total | State 1 | State 2 | State 3 |
| Net Sales | $2,000,000 | $3,000,000 | $5,000,000 |
| Property values | $1,000,000 | $1,000,000 | $3,000,000 |
| Compensation | $300,000 | $500,000 | $700,000 |
| State Income and tax rates | 7% | 6% | 4% |
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Disruption In The Audit Market
Authors: Krish Bhaskar, John Flower
1st Edition
0367220660, 978-0367220662
