Use figure 24.1 to compute Beta Corporations State F taxable income for the year. Addition modifications 12,000 Allocated income (total) 15,000 Allocated income (State F) 5,000 Allocated income (State G) 10,000 Tax credits 50 Federal taxable income 90,000 Subtraction modifications 15,000 Apportionment percentage 40% Tax rate 5% Figure 24.1 Computing Corporate State Income Tax Liability Starting point in computing taxable income + State modification items State tax base + Total net allocable income/(loss) (nonbusiness income) Total apportionable income/(loss)(business income) X States apportioned percentage Income apportioned to the state + Income/(loss) allocated to the state State taxable income/(loss) X State tax rate Gross income tax liability for the state - States tax credits Net income tax liability for the state