Oldham, Incorporated conducts business in State M and State N, which both use the UDITPA three-factor formula to apportion income. State M's corporate tax rate is 4.5 percent, and State N's corporate tax rate is 7 percent. This year, Oldham had the following sales, payroll, and property (in thousands of dollars) in each state: Gross receipts from sales Payroll expense Property costs Total taxable income subject to apportionment Apportionment percentage State M $ 3,350 1,180 940 State taxable income Tax rate State tax State N $ 7,700 1,320 1,720 Required: Oldham's before-tax income was $3.10 million. Compute Oldham's State M and State N tax if State N uses an apportionment formula in which the sales factor is double-weighted. Note: Round all apportionment factors to 4 decimal places, e.g., 47.15% would be 0.4715. Enter "Apportionment percentage" and "Tax rate" in decimals and not in percentage. Do not round any intermediate values. Enter your answers in dollars and not in millions or thousands of dollars. Total $ 11,050 2,500 2,660 State M State N

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Chapter1: Financial Statements And Business Decisions
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Oldham, Incorporated conducts business in State M and State N, which both use the UDITPA three-factor formula to apportion income.
State M's corporate tax rate is 4.5 percent, and State N's corporate tax rate is 7 percent. This year, Oldham had the following sales,
payroll, and property (in thousands of dollars) in each state:
Gross receipts from sales
Payroll expense
Property costs
State M
$ 3,350
1,180
940
Total taxable income subject to apportionment
Apportionment percentage
State taxable income
Tax rate
State tax
State N
$ 7,700
1,320
1,720
Required:
Oldham's before-tax income was $3.10 million. Compute Oldham's State M and State N tax if State N uses an apportionment formula in
which the sales factor is double-weighted.
Note: Round all apportionment factors to 4 decimal places, e.g., 47.15% would be 0.4715. Enter "Apportionment percentage" and
"Tax rate" in decimals and not in percentage. Do not round any intermediate values. Enter your answers in dollars and not in
millions or thousands of dollars.
Total
$ 11,050
2,500
2,660
State M
State N
Transcribed Image Text:Oldham, Incorporated conducts business in State M and State N, which both use the UDITPA three-factor formula to apportion income. State M's corporate tax rate is 4.5 percent, and State N's corporate tax rate is 7 percent. This year, Oldham had the following sales, payroll, and property (in thousands of dollars) in each state: Gross receipts from sales Payroll expense Property costs State M $ 3,350 1,180 940 Total taxable income subject to apportionment Apportionment percentage State taxable income Tax rate State tax State N $ 7,700 1,320 1,720 Required: Oldham's before-tax income was $3.10 million. Compute Oldham's State M and State N tax if State N uses an apportionment formula in which the sales factor is double-weighted. Note: Round all apportionment factors to 4 decimal places, e.g., 47.15% would be 0.4715. Enter "Apportionment percentage" and "Tax rate" in decimals and not in percentage. Do not round any intermediate values. Enter your answers in dollars and not in millions or thousands of dollars. Total $ 11,050 2,500 2,660 State M State N
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