Question
Philly Cheesecake Corporation (Cheesecake) operates food stands in several states and is headquartered in Philadelphia, Pennsylvania. Philly has a Pennsylvania state income tax base of
Philly Cheesecake Corporation (Cheesecake) operates food stands in several states and is headquartered in Philadelphia, Pennsylvania. Philly has a Pennsylvania state income tax base of $500,000. Of this amount, $150,000 was nonbusiness income. Philly Cheesesteak's Pennsylvania apportionment factor is 28.52 percent. The nonbusiness income allocated to Pennsylvania was $61,000. Assuming a Pennsylvania corporate tax rate of 7.75 percent, what is Philly Cheesesteaks Pennsylvania state tax liability?
| a. | $19,361 |
| b. | $11,051 |
| c. | $12,464 |
| d. | $4,727 |
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Managerial Accounting Creating Value in a Dynamic Business Environment
Authors: Ronald W. Hilton
11th edition
125956956X, 978-1259569562
