Problem LO
True Corporation, a wholly owned subsidiary of Trumaine Corporation, generated a $ taxable loss in its first year of operations. True's activities and sales are restricted to State A which imposes an income tax. In the same year, Trumaine's taxable income is $ Trumaine's activities and sales are restricted to State B which imposes an income tax. Both states use a threefactor apportionment formula that equally weights sales, payroll, and property, and both require a unitary group to file on a combined basis. Sales, payroll, and average property for each corporation are as follows:
tabletableTrueCorporationtableTrumaineCorporationTotalSales$$$
