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:

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.)

Sharon Inc. State X (throwback)		Carol Corp. State Y (throwback)		Josey Corp. State Z (nonthrowback)		Janice Corp. State Z (nonthrowback)
Dividend income		$	1,080	$	450	$	775	$	905
Business income		$	54,700	$	36,000	$	14,300	$	11,600
Sales:	State X	$	77,200	$	10,100	$	17,600	$	11,700
	State Y			$	42,500	$	5,300
	State Z			$	20,400	$	44,500	$	15,500
	State A	$	23,100
	State B	$	17,800					$	13,200
Property:	State X	$	65,750	$	21,800			$	14,800
	State Y			$	92,750
	State Z					$	26,750	$	34,500
	State A	$	59,250
Payroll:	State X	$	11,000	$	16,100
	State Y			$	48,500
	State Z					$	5,500	$	13,500
	State A							$	14,600

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

Sharon

Carol

Josey

Janice

b. Calculate the business income apportioned to State X.

Business Income:

c.Calculate the taxable income for State X for each company.

Sharon:

Carol:

Josey:

Janice:

d. Determine the tax liability for State X for the entire group.

Tax liability:

Answer 1

answer: