Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dillman Corporation has nexus in States A and B. Dillman's activities for the year are summarized below: State A State B Total Sales $1,270,000 $450,000

Dillman Corporation has nexus in States A and B. Dillman's activities for the year are summarized below:

State A State B Total
Sales $1,270,000 $450,000 $1,720,000
Property
Average historical cost 560,000 330,000 890,000
Average accumulated depreciation (350,000) (140,000) (490,000)
Payroll 2,620,000 500,000 3,120,000
Rent expense -0- 40,000 40,000

Determine the apportionment factors for States A and B, assuming that State A uses a three-factor apportionment formula under which sales, property (net depreciated basis), and payroll are equally weighted, and State B employs a single-factor formula that consists solely of sales.

State A has adopted the UDITPA with respect to the inclusion of rent payments in the property factor.

When required, round any intermediate percentage factors to two decimal places in your computations. Round your final answers to two decimal places.

State A's apportionment factor is %, and State B's apportionment factor is %.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Basics Of Quality Auditing

Authors: Ronald Blank

1st Edition

1138438863, 9781138438866

More Books

Students also viewed these Accounting questions