Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required information (The following information applies to the questions displayed below.) Sharon Inc. is headquartered in State X and owns 100 percent of Carol Corp.,
Required information (The following information applies to the questions displayed below.) Sharon Inc. is headquartered in State X and owns 100 percent of Carol Corp., Josey Corp., and Janice Corp., which form a single unitary group. Assume sales operations are within the solicitation bounds of Public Law 86-272. Each of the corporations has operations in the following states: Domicile State Dividend income Business income Sales: State x State Y State z acea State A State B Property: Statex State Y State z State A Payroll: State x State Y State z State A Sharon Inc. Carol Corp. Josey Corp. Janice Corp. State x State y State z State z (throwback) (throwback) (nonthrowback) (nonthrowback) $ 1,200 $ 285 $ 490 $ 535 60,200 53,000 17,100 10,600 90,500 17,700 13,900 15,800 55,750 6,450 21,000 20,500 16,900 20,300 10,300 16,200 63,250 25,800 19,000 103, 250 40,750 40,250 56, 750 11,200 13, 200 44,750 7,800 17, 100 13,500 Compute the following for State X assuming a tax rate of 15 percent. (Use an equally weighted three-factor apportionment. Round all apportionment factors to 4 decimal places. Round other answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.) a. Calculate the State X apportionment factor for Sharon Inc., Carol Corp., Josey Corp., and Janice Corp. State X Apportionment factors Sharon Carol Josey Janice b. Calculate the business income apportioned to State X. State X Business Income c. Calculate the taxable income for State X for each company. State X taxable income Sharon Carol Josey Janice d. Determine the tax liability for State X for the entire group. State X Tax liability
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started