Question
Harper, Inc. is incorporated in State 1 but also has offices in States 2, 3, and 4. All four states use the Uniform Division of
Harper, Inc. is incorporated in State 1 but also has offices in States 2, 3, and 4. All four states use the Uniform Division of Income for Tax Purposes Act (UDITPA) three-factor formula for determining the state apportionment percentage. Based on the following financial information, what percentages of Harpers income should be apportioned to States 1 and 2? Round to the nearest whole percentage. Please show your calculations at how you arrived at your answer.
| Gross Sales | Payroll Expense | Property Costs | ||||
| State 1 | $ | 2,880,000 | $ | 332,800 | $ | 1,000,000 |
| State 2 | $ | 840,000 | $ | 183,200 | $ | 104,000 |
| State 3 | $ | 420,000 | $ | 93,600 | $ | 128,000 |
| State 4 | $ | 1,660,000 | $ | 280,800 | $ | 136,000 |
| Total | $ | 5,800,000 | $ | 890,400 | $ | 1,368,000 |
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Managerial Accounting
Authors: Carl L. Moore
5th Edition
0538019409, 978-0538019408
