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Oldham, Incorporated conducts business in State M and State N, which both use the UDITPA three-factor formula to apportion income. State M's corporate tax rate is 4.50 percent, and State N's corporate tax rate is 7.00 percent. This year, Oldham had the following sales, payroll, and property (in thousands of dollars) in each state: Gross receipts from sales State M $ 3,900 State N $ 8,400 Total $ 12,300 Payroll expense Property costs 1,700 1,800 2,100 1,900 3,800 3,700 Required: If Oldham's before-tax income was $3.9 million, compute its State M and State N tax. Note: Round all apportionment factors to 4 decimal places, e.g., 47.15% would be 0.4715. Enter "Apportionment percentage" and "Tax rate" in decimals and not in percentage. Do not round any intermediate values. Enter your answers in dollars and not in millions or thousands of dollars. Total taxable income subject to apportionment Apportionment percentage State taxable income Tax rate State tax State M State N

Oldham, Incorporated conducts business in State M and State N, which both use the UDITPA three-factor formula to apportion income. State M's corporate tax rate is 4.50 percent, and State N's corporate tax rate is 7.00 percent. This year, Oldham had the following sales, payroll, and property (in thousands of dollars) in each state: Gross receipts from sales State M $ 3,900 State N $ 8,400 Total $ 12,300 Payroll expense Property costs 1,700 1,800 2,100 1,900 3,800 3,700 Required: If Oldham's before-tax income was $3.9 million, compute its State M and State N tax. Note: Round all apportionment factors to 4 decimal places, e.g., 47.15% would be 0.4715. Enter "Apportionment percentage" and "Tax rate" in decimals and not in percentage. Do not round any intermediate values. Enter your answers in dollars and not in millions or thousands of dollars. Total taxable income subject to apportionment Apportionment percentage State taxable income Tax rate State tax State M State N

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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Oldham, Incorporated conducts business in State M and State N, which both use the UDITPA three-factor formula to apportion income. State M's corporate tax rate is 4.50 percent, and State N's corporate tax rate is 7.00 percent. This year, Oldham had the following sales, payroll, and property (in thousands of dollars) in each state: Gross receipts from sales State M $ 3,900 State N $ 8,400 Total $ 12,300 Payroll expense Property costs 1,700 1,800 2,100 1,900 3,800 3,700 Required: If Oldham's before-tax income was $3.9 million, compute its State M and State N tax. Note: Round all apportionment factors to 4 decimal places, e.g., 47.15% would be 0.4715. Enter "Apportionment percentage" and "Tax rate" in decimals and not in percentage. Do not round any intermediate values. Enter your answers in dollars and not in millions or thousands of dollars. Total taxable income subject to apportionment Apportionment percentage State taxable income Tax rate State tax State M State N
Transcribed Image Text:Oldham, Incorporated conducts business in State M and State N, which both use the UDITPA three-factor formula to apportion income. State M's corporate tax rate is 4.50 percent, and State N's corporate tax rate is 7.00 percent. This year, Oldham had the following sales, payroll, and property (in thousands of dollars) in each state: Gross receipts from sales State M $ 3,900 State N $ 8,400 Total $ 12,300 Payroll expense Property costs 1,700 1,800 2,100 1,900 3,800 3,700 Required: If Oldham's before-tax income was $3.9 million, compute its State M and State N tax. Note: Round all apportionment factors to 4 decimal places, e.g., 47.15% would be 0.4715. Enter "Apportionment percentage" and "Tax rate" in decimals and not in percentage. Do not round any intermediate values. Enter your answers in dollars and not in millions or thousands of dollars. Total taxable income subject to apportionment Apportionment percentage State taxable income Tax rate State tax State M State N
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