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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
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 M State N Total Gross receipts 'From sales $ 3,879 $ 8,429 $ 12,299 Payroll expense 1,268 2,179 3,438 Property costs 1,453 1,859 3,393 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. $ 5,200,000 0.3739 Total taxable income subject to apportionment Apportionment percentage State taxable income Tax rate State tax
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