Sante Fe Corporation's sales office and manufacturing plant are located in State A. Sante Fe also maintains a manufacturing plant and sales office in State B. For purposes of apportionment, State A defines payroll as all compensation paid to employees, including contributions to § 401(k) deferred compensation plans. Under the statutes of State B, neither compensation paid to officers nor contributions to § 401(k) plans are included in the payroll factor. Sante Fe incurred the following personnel costs. State A State B Wages and salaries for employees other than officers $39,000 $26,000 Salaries for officers $26,000 $13,000 Contributions to § 401(k) plans Total Round your computations to four decimal places before converting to a percentage. If required, round your final answers to two decimal places. What is the payroll factor for: a. State A? b. State B? Total $65,000 $39,000 $13,000 $6,500 $19,500 $78,000 $45,500 $123,500 32 X % 40%

Sante Fe Corporation's sales office and manufacturing plant are located in State A. Sante Fe also maintains a manufacturing plant and sales office in State B. For purposes of apportionment, State A defines payroll as all compensation paid to employees, including contributions to § 401(k) deferred compensation plans. Under the statutes of State B, neither compensation paid to officers nor contributions to § 401(k) plans are included in the payroll factor. Sante Fe incurred the following personnel costs. State A State B Wages and salaries for employees other than officers $39,000 $26,000 Salaries for officers $26,000 $13,000 Contributions to § 401(k) plans Total Round your computations to four decimal places before converting to a percentage. If required, round your final answers to two decimal places. What is the payroll factor for: a. State A? b. State B? Total $65,000 $39,000 $13,000 $6,500 $19,500 $78,000 $45,500 $123,500 32 X % 40%

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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