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Determine the apportionment factors for A and B assuming that A uses a three-factor apportionment formula under which sales, property (net depreciated basis), and payroll are equally weighted and B employs a single-factor formula that consists solely of sales. State A has adopted the UDITPA with respect to the inclusion of rent payments in the property factor.

Determine the apportionment factors for A and B assuming that A uses a three-factor apportionment formula under which sales, property (net depreciated basis), and payroll are equally weighted and B employs a single-factor formula that consists solely of sales. State A has adopted the UDITPA with respect to the inclusion of rent payments in the property factor.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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LO.5 Dillman Corporation has nexus in States A and B. Dillman's activities for the year are summarized below. State A State B Sales Property Average historical cost Average accumulated depreciation Payroll Rent expense $1,200,000 500,000 (300,000) 2,500,000 -0- Ś 400,000 300,000 (100,000) 500,000 35,000 Total $1,600,000 800,000 (400,000) 3,000,000 35,000 Determine the apportionment factors for A and B assuming that A uses a three-factor apportionment formula under which sales, property (net depreciated basis), and payroll are equally weighted and B employs a single-factor formula that consists solely of sales. State A has adopted the UDITPA with respect to the inclusion of rent payments in the property factor.
Transcribed Image Text:LO.5 Dillman Corporation has nexus in States A and B. Dillman's activities for the year are summarized below. State A State B Sales Property Average historical cost Average accumulated depreciation Payroll Rent expense $1,200,000 500,000 (300,000) 2,500,000 -0- Ś 400,000 300,000 (100,000) 500,000 35,000 Total $1,600,000 800,000 (400,000) 3,000,000 35,000 Determine the apportionment factors for A and B assuming that A uses a three-factor apportionment formula under which sales, property (net depreciated basis), and payroll are equally weighted and B employs a single-factor formula that consists solely of sales. State A has adopted the UDITPA with respect to the inclusion of rent payments in the property factor.
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