Sharon Incorporated is headquartered in State X and owns 100 percent of Carol Corporation, JoseyCorporation, and Janice Corporation, which form a single unitary group. Assume sales operations are withinthe solicitation bounds of Public Law 86-272. Each of the corporations has operations in the following states:DomicileStateDividendincomeBusinessincomeSales:State XSales:State YSales:State ZSales:State ASales:State BProperty:State XProperty:State YProperty:State ZProperty:State APayroll:State XPayroll:State YPayroll:State ZPayroll:State ASharonCarolJoseyIncorporated Corporation CorporationState X State YState Z(throwback) (throwback) (nonthrowback)$ 1,490$ 525$ 58046,25015,50059,75020,30060,50075,20021,90015,90060,00065,00012,30028,40093,50015,50055,75013,40012,5007,85028,00043,5003, 150JaniceCorporationState Z(nonthrowback)$ 48515,70018,60012,50011,70014, 20025,50011,10010, 200Compute the following for State X assuming a tax rate of 15 percent.Note: Use an equally weighted three-factor apportionment. Round all apportionment factors to 4 decimalplaces. Round other answers to the nearest whole dollar amount. Leave no answer blank. Enter zero ifapplicable. b. Calculate the business income apportioned to State X.Business IncomeState X

The organization operates a business to make a profit. Organizations earn income from business and…

Answered: b. Calculate the business income…

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b. Calculate the business income apportioned to State X. Business Income State X

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter16: Multijurisdictional Taxation

Section: Chapter Questions

Problem 3CE

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Sharon Incorporated is headquartered in State X and owns 100 percent of Carol Corporation, Josey Corporation, and Janice Corporation, 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 Dividend income Business income Sales: State X Sales: State Y Sales: State Z Sales: State A Sales: State B Property: State X Property: State Y Property: State Z Property: State A Payroll: State X Payroll: State Y Payroll: State Z Payroll: State A Sharon Carol Josey Incorporated Corporation Corporation State X State Y State Z (throwback) (throwback) (nonthrowback) $ 1,490 $ 525 $ 580 46,250 15,500 59,750 20,300 60,500 75,200 21,900 15,900 60,000 65,000 12,300 28,400 93,500 15,500 55,750 13,400 12,500 7,850 28,000 43,500 3, 150 Janice Corporation State Z (nonthrowback) $ 485 15,700 18,600 12,500 11,700 14, 200 25,500 11,100 10, 200 Compute the following for State…
Sharon Incorporated is headquartered in State X and owns 100 percent of Carol Corporation, Josey Corporation, and Janice Corporation, 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 Dividend income Business income Sales: State X Sales: State Y Sales: State Z Sales: State A Sales State B Property: State X Property: State Y Property: State Z Property: State A Payroll: State X Payroll: State Y Payroll: State Z Payroll: State A Sharon Carol Josey Incorporated Corporation Corporation State X State Y State Z (throwback) (throwback) (nonthrowback) $ 1,830 $ 525 $ 595 46,500 78,500 29,300 16,900 69,500 65,750 14,500 43,250 18,500 52,500 20,200 21,600 86,500 17,900 55,250 14,200 14,300 6,850 39,750 40,500 6,200 Janice Corporation State Z (nonthrowback) $ 530 19,500 16,100 14,500 18,400 12,200 20,750 15,400 19,400 Compute the following for State X…
Sharon Incorporated is headquartered in State X and owns 100 percent of Carol Corporation, Josey Corporation, and Janice Corporation, 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. Dividend income Business income Sales: State X Sales: State Y Sales: State Z Sales: State A Sales: State B Property: State X Property: State Y Property: State Z Property: State A Payroll: State X Payroll: State Y Payroll: State Z Payroll: State A Sharon Carol Josey Incorporated Corporation Corporation State X State Y State Z (throwback) (throwback) (nonthrowback) $ 525 $ 595 $ 1,830 46,500 78,500 Business Income 29,300 16,900 69,500 State X 65,750 14,500 b. Calculate the business income apportioned to State X. 43,250 18,500 52,500 20,200 21,600 86,500 17,900 55,250 14,200 14,300 6,850 39,750 40,500 6,200 Janice Corporation State Z (nonthrowback) $ 530 19,500…
Required information [The following information applies to the questions displayed below.] Sharon Incorporated is headquartered in State X and owns 100 percent of Carol Corporation, Josey Corporation, and Janice Corporation, 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 Dividend income Business income Sales: State X Sales: State Y Sales: State Z Sales: State A Sales: State B Property: State X Property: State Y Property: State Z Property: State A Payroll: State x Payroll: State Y Payroll: State Z Payroll: State A Business Income Carol Sharon Josey Incorporated Corporation Corporation State X State Y State Z (throwback) (throwback) (nonthrowback) $1,830 $ 525 $ 595 14, 200 46,500 78,500 State X $ 72,150 29,300 16,900 69,500 65,750 14,500 b. Calculate the business income apportioned to State X. 43,250 18,500 52,500 20, 200 21,600 86,500…
Required information [The following information applies to the questions displayed below.] Sharon Incorporated is headquartered in State X and owns 100 percent of Carol Corporation, Josey Corporation, and Janice Corporation, 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 Dividend income Business income Sales: State X Sales: State Y Sales: State Z Sales: State A Sales: State B Property: State X Property: State Y Property: State Z Property: State A Payroll: State X Payroll: State Y Payroll: State Z Payroll: State A Business Income Sharon Carol Josey Incorporated Corporation Corporation State Y State Z (throwback) (throwback) (nonthrowback) State X $ 1,240 $315 $ 375 42,500 16, 200 10,900 56,500 28, 200 69,200 93,000 State X 24,800 19,600 65,500 63,500 14,300 b. Calculate the business income apportioned to State X. 22,100 102,500 13,000…
Which of the following statements is true related to the conversion of a regular corporation to a limited liability company taxed as a partnership? A. In the conversion of a C corporation to an LLC taxed as a partnership, the transfer of appreciated assets from the liquidating corporations is not taxed at the corporate level. B. The corporation can contribute it's assets and liabilities into the new LLC in exchange for ownership interests. The corporation then distributes the LLC interests to it's shareholders in liquidation of the shareholders corporate stock. C. If the corporation distributes it's assets and liabilities to it's shareholders in liquidation of the new corporation, the shareholders are restricted from contributing these assets into the new partnership. D. The existence of substantially appreciated intangibles and goodwill with little or no tax basis has no consequences when converting a C corporation to an LLC
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