What is d state y taxable income for the current year

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Question - D Corporation operates in two states, Y and Z. Both states impose a state income tax. For the current year, D has taxable income of $5,000,000 (after state adjustments). Such income consists of $4,000,000 of business income and $1,000,000 of nonbusiness income attributable solely to State Y. D conducts sufficient activities in both states to create nexus. Both states allocate non-business income and apportion business income using a three-factor formula in which sales, payroll, and property are equally weighted. The current year factors for State Y are as follows: Sales 80%, Property 40% and Payroll 60%. What is D's State Y taxable income for the current year?

Reference no: EM132964149

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