Kappa Corporation operates in two states. Kappa's total payroll amounts to $5,000,000 . The relevant tax rates
Fantastic news! We've Found the answer you've been seeking!
Question:
Kappa Corporation operates in two states. Kappa's total payroll amounts to $5,000,000 . The relevant tax rates in the two states are 9 and 6 percent respectively. Its total taxable income is $100,000.
a. If $3,000,000 is attributable to State 1, what is the payroll factor for each state?
b. If Kappa Corporation shifts $1,000,000 of its payroll to the lower-tax jurisdiction, what are the resulting payroll factors ?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: