Solution-Determine the State tax liability for state X

Determine the State tax liability for state X

Reference no: EM132568073

Question - Offenburg, Inc. does business in states X and Y. State X uses an equally-weighted three-factor apportionment formula and has a 4 percent state tax rate. State Y uses an apportionment formula that double-weights the sales factor and has a 6 percent tax rate. The company's taxable income, before apportionment, is $3 million. Its sales, payroll, and property information are as follows.

	X	Y	Total
Gross receipts/sales	$575,000	100,000	675,000
Payroll	140,000	60,000	200,000
Property	600,000	150,000	750,000

Requirements - Determine the following:

(1) The company's apportionment factor to state X in percent (XX.X%).

(2) The company's apportionment factor to state Y in percent (XX.X%).

(3) State tax liability for state X.

(4) State tax liability for state Y.

Reference no: EM132568073

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Determine the State tax liability for state X

Reference no: EM132568073

Reference no: EM132568073

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