Question

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 Janice Corp. State Z Sharon Inc. Carol Corp. Josey Corp. State X State Y StateZ Domicile State (throwback) (throwback) (nonthrowback) (nonthrowback) Dividend income Business income Sales: $1,580 $69,000 $81,700 $ 405 $49,500 $16,400 $50,500 $27,700 $ 695 $19,000 $11,400 6,300 $36,000 $730 $18,900 $13,200 State X State Y State Z State A State B State X State Y State Z State A State X State Y State Z State A $19,200 $29,700 $15,000 $55,000 $14,700 $10,400 $21,500 $88,000 Property: $36,250 $27,750 $61,250 $12,900 Payroll: $17,600 $45,500 $ 3,650 $16,900 $14,500 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.)

Answer 1

Answer:

			sharon		carol	josey(No nexus)	janice
Sales	X		81,700		16,400	11,400	13,200
	total		1,26,400		94,600	53,700	47,100
	Proportion		0.65		0.17	0.21	0.28
Property	X		55,000		21,500		10,400
	Total		1,16,250		1,09,500	36,250	38,150
	Proportion		0.47		0.20	-	0.27
Payroll	X		12,900		17,600
	Total		12,900		63,100	3,650	31,400
	Proportion		1.00		0.28	-	-

Calculate the State X apportionment factor for Sharon Inc., Carol Corp., Josey Corp., and Janice Corp.
			sharon		carol	josey(No nexus)	janice
Sales			0.65		0.17	0.21	0.28
property			0.47		0.20	-	0.27
payroll			1.00		0.28	-	-
Total			2.12		0.65		0.55
Factor			3		3		3
Apportionement Factor			0.7065		0.2162	0.00	0.2700