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Khan, Inc., a domestic corporation, reports $650,000 of gross income and an $80,000 expense, all related to real estate activities. Determine the expense allocation and

Khan, Inc., a domestic corporation, reports $650,000 of gross income and an $80,000 expense, all related to real estate activities.

Determine the expense allocation and apportionment using gross income as a basis.

When required, round any division to three decimal places. Use rounded amounts in subsequent computations.

Foreign Gross Income

U.S. Gross Income

Allocation

Apportionment Foreign

Apportionment U.S.

Sales income $500,000 $85,000 $ $ $
Rental Income $50,000 $15,000 $ $ $
$550,000 $100,000 $80,000 $ $

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