Question
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 U.S. Allocation Apportionment Apportionment
Gross Income Gross Income Foreign U.S.
Sales $500,000 $85,000 $ $ $
Income
Rental $50,000 $15,000 $ $ $
income
____________________________________________________________________________
$550,000 $100,000 $80,000 $ $
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