Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. conestoga corporation operates manufacturing facil

Conestoga Corporation operates manufacturing facilities in State P and State Q. In addition, the corporation owns...

Free

50.1K

Verified Solution

Question

Accounting

Conestoga Corporation operates manufacturing facilities in StateP and State Q. In addition, the corporation owns nonbusiness rentalproperty in State Q. Conestoga incurred the following compensationexpenses:

   State P   State Q    Total
Manufacturing wages$650,000$450,000$1,110,000
Administrative wages340,000180,000520,000
Officers' salaries320,000100,000430,000

Sixty percent of the time is spent by the administrative stafflocated in State Q and 30% of the time spent by officers located inState Q are devoted to the operation, maintenance, and supervisionof the rental property. Both states exclude such rent income fromthe definition of apportionable income.

Round your answers to four decimal places beforeconverting to a percentage. If required, round your final answersto two decimal places.

Conestoga's payroll factor for State P is  % and forState Q is  %.

Answer & Explanation Solved by verified expert
4.5 Ratings (913 Votes)

Ans:

Owned Rented
Description Total State P State Q
Manufacturing Wages 1100000      0.5855      0.4090
Administrative Wages 520000      0.6538      0.3462
Office Salaries 430000      0.7441      0.2558
Factor      1.9834      1.011

Working:

For manufacturing wages (P)= 650,000/1,110,000*100 = 58.55%

For Administrative wages(P)= 340,000/520,000*100= 65.38%

Office Salaries(p)= 320,000/430,000*100= 74.41%

Now apportioning the given information we can determine the factors of state P and Q now by converting the same in percentage terms by multiplying it by 100 we can determine the payroll factor as stated below:

Total Factor      3.0000
A B C = A/B
State P      1.9834      3.0000 0.6611 Payroll Factor State P
State Q      1.011      3.0000 0.3370 Payroll Factor State Q

Payroll Factor

State P = 0.6611 or 66.11%

State Q = 0.3370 = 33.70%
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The number of contaminants in samples of one cubic centimetre of polluted water has a Poisson...

Statistics
Q

What methods do modern farmers use to nutrients in the soil preserve restore Select all...

Biology
Q

Due to intercostal muscle and the the pressure inside to between the 2 pleura layers,...

Biology
Q

A certain stream ecosystem has clean good quality water A diverse community of aquatic organisms...

Biology
Q

This means that the medians i e on the centroid Example 2 Three masses 3...

Physics
Q

2 To determine the distance between two points on the coordinate plane begin by connecting...

Geometry
Q

The data in the table below represents the percentage of patients who have survived after...

Statistics
Q

Each student listed in the table has taken 3 math tests Find the score each...

Algebra
Q

13. Which of the following is considered a mixed cost for a bakery that makes...

Accounting
Q

1 A project requires an initial investment of $150 million in new equipment. The equipment...

Finance
Q

Suppose you have a 20 -year fixed personal loan with an interest rate of 7.25%....

Accounting
Q

Required information [The following information applies to the questions displayed below.] INVOLVE was incorporated as...

Accounting