ZuoTi.Pro
Question

José Corporation realized $900,000 taxable income from the sales of its products in States X and...

José Corporation realized $900,000 taxable income from the sales of its products in States X and Z. José’s activities in both states establish nexus for income tax purposes. José’s sales, payroll, and property among the states include the following. State X State Z Totals Sales $1,500,000 $1,000,000 $2,500,000 Property 500,000 –0– 500,000 Payroll 2,000,000 –0– 2,000,000 ​ X utilizes an equally weighted three-factor apportionment formula. How much of José’s taxable income is apportioned to X?

a. $900,000

b. $120,000

c. $780,000

d. $450,000

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1
State X apportionment factor
State X Total Ratio
Sales $1,500,000 $2,500,000 0.6
Property $500,000 $500,000 1
Payroll $2,000,000 $2,000,000 1
Total 2.6
Average 0.866666667
State X Apportionment factor is 86.67%
Total Taxable income $900,000
Income apportioned to State X $780,000
0 0
Add a comment
Know the answer?
Add Answer to:
José Corporation realized $900,000 taxable income from the sales of its products in States X and...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  •             Chipper Corporation realized $1,000,000 apportionable taxable income from the sales of its products in States X...

                Chipper Corporation realized $1,000,000 apportionable taxable income from the sales of its products in States X and Z. Both states use the same measure of pre-apportionment taxable income. Chipper’s activities establish nexus for income tax purposes only in Z, the state of its incorporation. Chipper’s sales, payroll, and property among the states include the following.                         State X           State Z            Totals Sales          $1,000,000      $2,000,000      $3,000,000 Property                    0        2,300,000        2,300,000 Payroll                      0        1,900,000        1,900,000 X utilizes a sales-only factor in its three-factor apportionment formula. How much of Chipper’s apportionable income is taxed by...

  • Castle Corporation conducts business in States 1, 2, and 3. Castle’s $630,000 taxable income consists of...

    Castle Corporation conducts business in States 1, 2, and 3. Castle’s $630,000 taxable income consists of $555,000 apportionable income and $75,000 allocable income generated from transactions conducted in State 3. Castle’s sales, property, and payroll are evenly divided among the three states, and the states all employ a three-equal-factors apportionment formula. Determine how much of Castle’s income is taxable in each of the following states. a. State 1: $ _________ b. State 2: $ _________ c. State 3: $ _________

  • Provide tax preparation by computing XYZ's apportionment factors for all three states. For at least one...

    Provide tax preparation by computing XYZ's apportionment factors for all three states. For at least one of the states (not all three), prepare the apportionment form using the income tax return forms for the current tax year. For example, use Form 120 for Arizona, Form K-120 for Kansas, or Form 512 for Oklahoma. You are only required to complete the apportionment schedule, not the entire tax return. Assume XYZ generates $100,200,000 of total revenue. State Apportionment Use this resource to...

  • 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 bound...

    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: Domicile State Sharon Inc. State X (throwback) Carol Corp. State Y (throwback) Josey Corp. State Z (nonthrowback) Janice Corp. State Z (nonthrowback) Dividend income $ 1,000 $ 200 $ 300 $ 500 Business...

  • Sharon Inc. is headquartered in State X and owns 100 percent of Carol Corp., Josey Corp.,...

    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: 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...

  • Sharon Inc. is headquartered in State X and owns 100 percent of Carol Corp., Josey Corp., and Jan...

    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: 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...

  • a. Calculate the State X apportionment factor for Sharon Inc., Carol Corp., Josey Corp., and Janice...

    a. Calculate the State X apportionment factor for Sharon Inc., Carol Corp., Josey Corp., and Janice Corp. b. Calculate the business income apportioned to State X. c. Calculate the taxable income for State X for each company. d. Determine the tax liability for State X for the entire group. Required information [The following information applies to the questions displayed below.] Sharon Inc. is headquartered in State X and owns 100 percent of Carol Cor., Josey Corp., and Janice Corp., which...

  • Sharon Inc. is headquartered in State X and owns 100 percent of Carol Corp., Josey Corp.,...

    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...

  • Complex Income Statement The following items were derived from Woodbine Circle Corporation's adjusted trial balance on...

    Complex Income Statement The following items were derived from Woodbine Circle Corporation's adjusted trial balance on December 31, 2019: Debit Credit $500,000 1,500,000 2,500,000 15,100,000 Cash Accounts receivable, net Inventory Property, plant, and equipment Accumulated depreciation Accounts payable Income taxes payable Notes payable Common stock ($1 par value) Additional paid-in capital Retained earnings, January 1, 2019 Sales-regular Sales-AL Division Cost of sales-regular Cost of sales-AL Division Administrative expenses-regular Administrative expenses-AL Division Interest expense-regular Interest expense-AL Division Loss on sale of...

  • Tivoli Home Furnishings Mini Case Anders Jensen founded Tivoli Home Furnishings as a corporation during mid-2015....

    Tivoli Home Furnishings Mini Case Anders Jensen founded Tivoli Home Furnishings as a corporation during mid-2015. Sales during the first full year (2016) of operation reached $1.3 million. Sales increased by 15% in 2017 and another 20% in 2018. However, profits, after increasing in 2017 over 2016, fell sharply in 2018, causing Anders to wonder what was happening to his “pride-and-joy” business venture. After all, Anders has continued to work as closely as possible to a 24/7 pace beginning with...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT