Question
Lido Inc. does business in two states, X and Y. State X uses an equal-weighted three-factor apportionment formula and has a 4 percent state tax
Lido Inc. does business in two states, X and Y. State X uses an equal-weighted three-factor apportionment formula and has a 4 percent state tax rate. State Y bases its apportionment only on the sales factor and has a 5 percent state tax rate. Lido's state-level taxable income before apportionment is $1,750,000.
State X | State Y | Total | ||||
Sales | $ | 4,600,000 | $ | 1,300,000 | $ | 5,900,000 |
Payroll | 1,200,000 | 800,000 | 2,000,000 | |||
Average property | 2,200,000 | 700,000 | 2,900,000 | |||
Calculate Lido's apportionment factors, income apportioned to each state, and state tax liability. (Round all apportionment factors to 2 decimal places, e.g., .04715 would be entered as 47.15% and final answer dollar values to the nearest whole dollar.)
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