Question
Gordon operates the Tennis Pro Shop in Blacksburg, Virginia. Tennis Pro has state-adjusted taxable income of $987,381. Tennis Pro has sales, payroll and property as
Gordon operates the Tennis Pro Shop in Blacksburg, Virginia. Tennis Pro has state-adjusted taxable income of $987,381. Tennis Pro has sales, payroll and property as follows:
Tennis Pro's Sales | Tennis Pro's Payroll | Tennis Pro's Property | ||
State | Sales | Payroll | Beginning | Ending |
DC | $184031 | $45500 | $43021 | $41983 |
Georgia | 420421 | 80000 | 92385 | 83024 |
Virginia | 1053293 | 260000 | 1331919 | 1438439 |
Other | 584035 | 80000 | 68203 | 68203 |
Total | 2241780 | 465500 | 1535528 | 1631649 |
Tennis Pro also rents Virginia property at an annual rent of $24,000.
Calculate each jurisdiction's apportionment factor for each category, the overall apportionment factor, and taxable income. Assume Virginia uses the double weighted sales factor method for apportionment and all other jurisdictions use the standard 3 factor apportionment method. All percentages should be rounded to two decimal places.
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