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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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