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Cromwell Corporation does business in two states, A and B$.$ State A uses an equal$-$weighted, three$-$factor apportionment formula and has a $5$ percent state tax rate. State B uses an apportionment formula that double$-$weights the sales factor and has a $6$ percent state tax rate. Cromwell$$s state$-$level taxable income, before apportionment, is $$2\mathrm{.}6$ million. It has identified the following components of its sales, payroll, and property factors:

$$State AState BTotalSales$ $6,600,000$$ $4,300,000$$ $10,900,000$Payroll$2,600,0001,800,0004,400,000$Average property$1,600,0001,100,0002,700,000$

Required:

Calculate Cromwell$$s apportionment factors, income apportioned to each state, and state tax liability.

State B is considering changing its apportionment formula to place $100$ percent of the weight on the sales factor, ignoring payroll and property for apportionment purposes. Given its current levels of activity, what would Cromwell$$s state tax liability be for each state? Cromwell Corporation does business in two states, A and B $.$ State A uses an equal$-$weighted, three$-$factor apportionment formula and has a $5$ percent state tax rate. State B uses an apportionment formula that double$-$weights the sales factor and has a $6$ percent state tax rate. Cromwell's state$-$level taxable income, before apportionment, is $\backslash (\backslash$$ $2\mathrm{.}6\backslash )$ million. It has identified the following components of its sales, payroll, and property factors:

Required:

a$.$ Calculate Cromwell's apportionment factors, income apportioned to each state, and state tax liability.

b$.$ State B is considering changing its apportionment formula to place $100$ percent of the weight on the sales factor, ignoring payroll and property for apportionment purposes. Given its current levels of activity, what would Cromwell's state tax liability be for each state?

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Calculate Cromwell's apportionment factors, income apportioned to each state, and state tax liability.

Note: Round all apportionment factors to $2$ decimal places, e$.$g$.,0\mathrm{.}4715$ would be entered as $\backslash (47\mathrm{.}15\backslash \%\backslash )$ and final answer dollar values to the nearest whole dollar. Consider your intermediate values in dollars and not in millions. Enter your answers also in dollars and not in millions of dollars. Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Calculate Cromwell's apportionment factors, income apportioned to each state, and state tax liability.

Note: Round all apportionment factors to $2$ decimal places, e$.$g$.,0\mathrm{.}4715$ would be entered as $\backslash (47\mathrm{.}15\backslash \%\backslash )$ and final answer dollar values to the nearest whole dollar. Consider your intermediate values in dollars and not in millions. Enter your answers also in dollars and not in millions of dollars.

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