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

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

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 32P

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