c. Calculate the taxable income for State X for each company. State X taxable incomeSharon Carol Josey Janice d. Determine the tax liability for State X for the entire group. Sharon Incorporated is headquartered in State X and owns 100 percent of Carol Corporation, JoseyCorporation, and Janice Corporation, which form a single unitary group. Assume sales operations are withinthe solicitation bounds of Public Law 86-272. Each of the corporations has operations in the following states:DomicileStateDividendincomeBusinessincomeSales:State XSales:State YSales:State ZSales:State ASales:State BProperty:State XProperty:State YProperty:State ZProperty:State APayroll:State XPayroll:State YPayroll:State ZPayroll:State ASharonCarolJoseyIncorporated Corporation CorporationState X State YState Z(throwback) (throwback) (nonthrowback)$ 1,490$ 525$ 58046,25015,50059,75020,30060,50075,20021,90015,90060,00065,00012,30028,40093,50015,50055,75013,40012,5007,85028,00043,5003, 150JaniceCorporationState Z(nonthrowback)$ 48515,70018,60012,50011,70014, 20025,50011,10010, 200Compute 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 decimalplaces. Round other answers to the nearest whole dollar amount. Leave no answer blank. Enter zero ifapplicable.

Under the solicitation bounds of Public Law 86-272, the business income should be assigned to the…

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 Dividend income Business income Sales: State X Sharon Carol Josey Incorporated Corporation Corporation State X State Y State Z (throwback) (throwback) (nonthrowback) (nonthrowback) $ 1,490 $ 525 $ 580 $ 485 60,500 46,250 75,200 15,500 13,400 12,500 Janice Corporation State Z 15,700 18,600

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 Dividend income Business income Sales: State X Sharon Carol Josey Incorporated Corporation Corporation State X State Y State Z (throwback) (throwback) (nonthrowback) (nonthrowback) $ 1,490 $ 525 $ 580 $ 485 60,500 46,250 75,200 15,500 13,400 12,500 Janice Corporation State Z 15,700 18,600

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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