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 | $ | 1,790 | $ | 535 | $ | 635 | $ | 925 | |
Business income | $ | 43,700 | $ | 38,250 | $ | 15,200 | $ | 10,900 | |
Sales: | State X | $ | 98,200 | $ | 14,400 | $ | 10,600 | $ | 15,200 |
State Y | $ | 54,250 | $ | 9,100 | |||||
State Z | $ | 22,900 | $ | 25,750 | $ | 13,300 | |||
State A | $ | 25,300 | |||||||
State B | $ | 18,900 | $ | 19,600 | |||||
Property: | State X | $ | 60,250 | $ | 27,300 | $ | 16,400 | ||
State Y | $ | 82,000 | |||||||
State Z | $ | 49,750 | $ | 29,500 | |||||
State A | $ | 67,750 | |||||||
Payroll: | State X | $ | 10,800 | $ | 19,900 | ||||
State Y | $ | 57,750 | |||||||
State Z | $ | 4,250 | $ | 11,900 | |||||
State A | $ | 19,000 | |||||||
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Compute the following for State X assuming a tax rate of 15 percent. (Use an equally weighted three-factor apportionment. Do not round intermediate calculations. Round 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.
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