Question
X Corp owns an 80% interest in P LLC, which is treated as a partnership for federal tax purposes. X and P are engaged in
X Corp owns an 80% interest in P LLC, which is treated as a partnership for federal
tax purposes. X and P are engaged in a unitary business relationship. Both X Corp
and P LLC have sales derived from sources within California, as follows:
| X Corp CA | X Corp Everywhere | P LLC CA | P LLC Everywhere | |
| Sales | $5,000 | $20,000 | $10,000 | $100,000 |
X Corp will be filing a California corporate income tax return. California has adopted
a Single Sales Factor ("SSF") apportionment formula. What is X Corp's California SSF
ratio?
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Smith and Roberson Business Law
Authors: Richard A. Mann, Barry S. Roberts
15th Edition
1285141903, 1285141903, 9781285141909, 978-0538473637
