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ROUND TO 4 DECIMAL POINTS & OTHERS TO WHOLE NEAR DOLLAR. THANK YOU Sharon Inc. is headquartered in State X and owns 100 percent of
ROUND TO 4 DECIMAL POINTS & OTHERS TO WHOLE NEAR DOLLAR. THANK YOU
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 State A State B Property: State x 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) $ 1,490 525 $ 580 $ 485 60,500 46,250 13,400 15,700 75,200 15,500 12,500 18,600 59,750 7,850 20,300 28,000 12,500 21,900 15,900 11,700 60,000 28,400 14,200 93,500 43,500 25,500 65,000 12,300 15,500 55,750 3,150 11,100 10,200 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 liabilityStep by Step Solution
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