Question
Sharon Inc. is headquartered in State X and owns 100 percent of Carol, Josey, and Janice Corps. which form a single unitary group. Assume sales
Sharon Inc. is headquartered in State X and owns 100 percent of Carol, Josey, and Janice Corps. 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 | Sharon Inc. State X (throwback) | Carol Corp. State Y (throwback) | Josey Corp. State Z (nonthrowback) | Janice Corp. State Z (nonthrowback) | |||||
Dividend income | $ | 1,540 | $ | 635 | $ | 760 | $ | 565 | |
Business income | $ | 42,700 | $ | 37,000 | $ | 19,800 | $ | 18,200 | |
Sales: | State X | $ | 85,200 | $ | 11,400 | $ | 10,500 | $ | 14,100 |
State Y | $ | 55,500 | $ | 7,550 | |||||
State Z | $ | 26,500 | $ | 39,250 | $ | 17,000 | |||
State A | $ | 21,100 | |||||||
State B | $ | 12,100 | $ | 12,100 | |||||
Property: | State X | $ | 71,500 | $ | 23,500 | $ | 12,000 | ||
State Y | $ | 90,250 | |||||||
State Z | $ | 25,750 | $ | 39,250 | |||||
State A | $ | 71,500 | |||||||
Payroll: | State X | $ | 19,300 | $ | 16,300 | ||||
State Y | $ | 63,750 | |||||||
State Z | $ | 5,950 | $ | 14,700 | |||||
State A | $ | 13,400 | |||||||
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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.) [The following information applies to the questions displayed below.]
Comprehensive Problem 23-51 Part a
a. Calculate the State X apportionment factor for Sharon Inc., Carol Corp., Josey Corp., and Janice Corp.
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b. Calculate the business income apportioned to State X.
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c. Calculate the taxable income for State X for each company.
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d. Determine the tax liability for State X for the entire group.
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