Palmetto Corporation realized $300,000 of taxable income from the sales of its products in States...
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Accounting
Palmetto Corporation realized $300,000 of taxable income from the sales of its products in States A and B. Palmetto's activities in both states establish nexus for income tax purposes. Palmetto's sales, payroll, and property in the states include the following:
Palmetto Corporation has nexus with States A and B. Apportionable income for the year totals $300,000. Palmetto's apportionment factors for the year use the following data.
State A
State B
Totals
Sales
$540,000
$260,000
$800,000
Property
$155,000
$0
$155,000
Payroll
$285,000
$0
$285,000
State B uses a sales-factor-only apportionment formula.
In your computations, round any division to three decimal places before converting to a percentage and use rounded amounts in subsequent computations. If required, round your final answer to the nearest dollar.
Compute Palmetto's taxable income for the year; B uses a sales-factor-only apportionment formula.
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