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Oldham Inc. conducts business in State M and State N, which both use the UDITPA three-factor formula to apportion income. State Ms corporate tax rate
Oldham Inc. conducts business in State M and State N, which both use the UDITPA three-factor formula to apportion income. State Ms corporate tax rate is 4.00 percent, and State Ns corporate tax rate is 7.50 percent. This year, Oldham had the following sales, payroll, and property (in thousands of dollars) in each state:
corporate tax rate is 4.00 percent, and State N's corporate tax rate is 7.50 percent. This year, Oldham had the following sales, payroll, and property (in thousands of dollars) in each state: Gross receipts from sales Payroll expense Property costs State M $3,200 1,000 1,100 State N $7,700 1,400 1,200 Total $10,900 2,400 2,300 If Oldham's before-tax income was $3.2 million, compute its State Mand State N tax. (Round all apportionment factors to 4 decimal places, e.g., 47.15% would be 0.4715. Enter "Apportionment percentage" and "Tax rate" in decimals and not in percentage. Enter your answers in dollars and not in millions or thousands of dollars.) State M State N Total taxable income subject to apportionment Apportionment percentage State taxable income Tax rate State taxStep by Step Solution
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