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:
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:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1
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 X
State Y
State Z
(throwback) (throwback) (nonthrowback)
$ 1,270
$730
$325
50,200
83,000
State X
29,400
12,800
67,500
64,750
12,800
b. Calculate the business income apportioned to State X.
47,000
11,000
41,000
27,900
20,500
92,250
12,200
47,500
17,600
19,400
7,300
22,500
36,500
7,200
Janice
Corporation
State Z
(nonthrowback)
$585
11,700
15,500
18,500
10,800
15,300
Compute 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 decimal places.
Round other answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.
24,750
19,100
16,800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5a8374e2-0c11-468f-938f-bf163a68d0f0%2F80c71fc9-d5cf-420e-8094-fccf8017fafc%2Fcqeblr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
1
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 X
State Y
State Z
(throwback) (throwback) (nonthrowback)
$ 1,270
$730
$325
50,200
83,000
State X
29,400
12,800
67,500
64,750
12,800
b. Calculate the business income apportioned to State X.
47,000
11,000
41,000
27,900
20,500
92,250
12,200
47,500
17,600
19,400
7,300
22,500
36,500
7,200
Janice
Corporation
State Z
(nonthrowback)
$585
11,700
15,500
18,500
10,800
15,300
Compute 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 decimal places.
Round other answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.
24,750
19,100
16,800
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