A Pirate's Life for Me, Inc. has been doing business for years in New York State providing boat building services. This year is the first year it was able to expand its business to another state, North Carolina. During the year the company had $1,000,000 of sales in New York State and $1.200,000 of sales in North Carolina, A Pirate's Life for Me, Inc. had payroll and property only in New York in the amount of $1,500,000 and $5,000,000, respectively. NC applies a single sale factor apportionment formula. Please explain the tax impact to the company of doing business in North Carolina and where the company will have to file corporate tax returns this year.

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter24: Multistate Corporate Taxation
Section: Chapter Questions
Problem 42P
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A Pirate's Life for Me, Inc. has been doing business for years in New York State providing boat
building services. This year is the first year it was able to expand its business to another state,
North Carolina. During the year the company had $1,000,000 of sales in New York State and
$1.200,000 of sales in North Carolina, A Pirate's Life for Me, Inc. had payroll and property only in
New York in the amount of $1,500,000 and $5,000,000, respectively. NC applies a single sale
factor apportionment formula. Please explain the tax impact to the company of doing business in
North Carolina and where the company will have to file corporate tax returns this year.
Transcribed Image Text:A Pirate's Life for Me, Inc. has been doing business for years in New York State providing boat building services. This year is the first year it was able to expand its business to another state, North Carolina. During the year the company had $1,000,000 of sales in New York State and $1.200,000 of sales in North Carolina, A Pirate's Life for Me, Inc. had payroll and property only in New York in the amount of $1,500,000 and $5,000,000, respectively. NC applies a single sale factor apportionment formula. Please explain the tax impact to the company of doing business in North Carolina and where the company will have to file corporate tax returns this year.
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