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 2 Property: State A Payroll: State x Payroll: State Y Payroll: State 2 Payroll: State A Sharon Carol Josey Incorporated Corporation Corporation State X State Y (throwback) (throwback) (nonthrowback) State 2 $ 1,000 $ 200 $ 300 50,000 70,000 Business Income 20,000 10,000 50,000 State X 50,000 10,000 b. Calculate the business income apportioned to State X 30,000 10,000 40,000 20,000 20,000 80,000 10,000 40,000 10,000 10,000 5,000 20,000 25,000 Janice Corporation State Z (nonthrowback) $ 500 10,000 10,000 10,000 10,000 10,000 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. 20,000 10,000 10,000
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 2 Property: State A Payroll: State x Payroll: State Y Payroll: State 2 Payroll: State A Sharon Carol Josey Incorporated Corporation Corporation State X State Y (throwback) (throwback) (nonthrowback) State 2 $ 1,000 $ 200 $ 300 50,000 70,000 Business Income 20,000 10,000 50,000 State X 50,000 10,000 b. Calculate the business income apportioned to State X 30,000 10,000 40,000 20,000 20,000 80,000 10,000 40,000 10,000 10,000 5,000 20,000 25,000 Janice Corporation State Z (nonthrowback) $ 500 10,000 10,000 10,000 10,000 10,000 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. 20,000 10,000 10,000
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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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 2
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
Carol
Sharon
Josey
Incorporated Corporation Corporation
State X
State Y
State 21
(throwback) (throwback) (nonthrowback)
$1,000
$200
$ 300
50,000
30,000
70,000
10,000
40,000
20,000
Business Income
20,000
10,000
50,000
State X
50,000
10,000
b. Calculate the business income apportioned to State X
20,000
80,000
10,000
40,000
10,000
10,000
5,000
20,000
25,000
3,000
Janice
Corporation
State z
(nonthrowback)
$500
10,000
10,000
10,000
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.
10,000
10,000
20,000
10,000
10,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbce406f3-3dde-41bf-9bc7-4dc15c5c0346%2Fe413b2ac-e94d-496d-bb72-31c00e99518b%2Fwy45ngy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
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 2
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
Carol
Sharon
Josey
Incorporated Corporation Corporation
State X
State Y
State 21
(throwback) (throwback) (nonthrowback)
$1,000
$200
$ 300
50,000
30,000
70,000
10,000
40,000
20,000
Business Income
20,000
10,000
50,000
State X
50,000
10,000
b. Calculate the business income apportioned to State X
20,000
80,000
10,000
40,000
10,000
10,000
5,000
20,000
25,000
3,000
Janice
Corporation
State z
(nonthrowback)
$500
10,000
10,000
10,000
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.
10,000
10,000
20,000
10,000
10,000
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