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: 2 Part 2 of 4 2.5 points Domicile State Dividend income Business income Sales: State x State Y State z State A State B Property: State x State Y State Z State A Payroll: State x State Y State z State A Sharon Inc. Carol Corp. Josey Corp. Janice Corp. Statex State Y State Z State z (throwback) (throwback) (nonthrowback) (nonthrowback) $ 1,280 $ 575 $ 405 $ 605 50,300 31,500 11,700 16,300 79,700 16,000 17,800 11,500 50,000 8,300 21,300 32,500 14,000 32,200 14,100 17,500 59,250 28,100 19,500 86,750 45, 750 40,500 69,000 13,300 15,400 43,750 5,000 12,300 14,100 eBook References 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.) b. Calculate the business income apportioned to State X. State X Business Income

Answer 1

	Sharon inc	Carol Corp.	Josey Corp.	Jenice corp.
Sales of state X	79700	16000	17800	16300
Total sales	126000	87300	58600	43000
Property of state X	59250	28100	0	19500
Total Property	128250	114850	45750	60000
Payroll state X	13300	15400	0	0
Total payroll	13300	59150	5000	26400

Calculation of state X business income aportionment Factor for all companies
	Sharon	Carol	Josey	Janice
Sales Factor	79700/126000	16000/87300	17800/58600	16300/43000
		0.63253968	0.18327606	0.303754266
Property Factor	59250/128250	28100/114850	0/45750	19500/60000
		0.461988304	0.244666957	0
Payroll factor	13300/13300	15400/59150	0/5000	0/26400
		1	0.26035503	0
Total factor	2.09452799	0.688298046	0	0.704069767
Devide by 3	0.70	0.23		0.23

We Are not going to calculate the apportionment for property or payroll.
Since josey has no property or payroll
Calculation of business income apportioned to state X
	Sharon	Carol	Janice
Business Incomes	50300	31500	16300
Apportionment	0.7	0.23	0.23
State X Business	50300*0.70	31500*0.23	16300*0.23
Incomes	35210	7245	3749
Total allocated business incomes =35210+7245+3749= $46204
business income for state X = $46204