60.1K

Verified Solution

Link Copied!

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 Sharon Incorporated State X $($throwback$)$ Carol Corporation State Y $($throwback$)$ Josey Corporation State Z $($nonthrowback$)$ Janice Corporation State Z $($nonthrowback$)$

Dividend income $ $1,000$ $ $200$ $ $300$ $ $500$

Business income $50,00030,00010,00010,000$

Sales: State X $70,00010,00010,00010,000$

Sales: State Y $40,0005,000$

Sales: State Z $20,00020,00010,000$

Sales: State A $20,000$

Sales: State B $10,00010,000$

Property: State X $50,00020,00010,000$

Property: State Y $80,000$

Property: State Z $25,00020,000$

Property: State A $50,000$

Payroll: State X $10,00010,000$

Payroll: State Y $40,000$

Payroll: State Z $3,00010,000$

Payroll: State A $10,000$

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.

d$.$ Determine the tax liability for State X for the entire group.

Answer & Explanation Solved by verified expert

See Answer