Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Oldham, Incorporated conducts business in State M and State N, which both use the UDITPA three-factor formula to apportion income. State M's corporate tax rate

image text in transcribed
image text in transcribed
Oldham, Incorporated conducts business in State M and State N, which both use the UDITPA three-factor formula to apportion income. State M's corporate tax rate is 4.5 percent, and State N's corporate tax rate is 7 percent. This year, Oldham had the following sales, payroll, and property (in thousands of dollars) in each state: State N State N TotaL Gross receipts from sales $ 3,876 $ 8,426 $ 12,296 Payroll expense 1,266 2,176 3,436 Property costs 1,456 1,856 3,366 Required: Oldham's before-tax income was $5.20 million. Compute Oldham's State M and State N tax if State N uses an apportionment formula in which the sales factor is double-weighted. Note: 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. Do not round any intermediate values. Enter your answers in dollars and not in millions or thousands of dollars. Total taxable income subject to apportionment Apportionment percentage State taxable income Tax rate State tax

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

8th Canadian Edition

111950242X, 1-119-50242-5, 978-1119502425

More Books

Students also viewed these Accounting questions

Question

Are the scores from Test A and Test B different?

Answered: 1 week ago

Question

Behaviour: What am I doing?

Answered: 1 week ago