Q corporation conducts a multistate business that operates in states a and b for the current taxable years q generated 3,000,000 of taxable income, consisting of 2,800,000 of business income and 200,000 of non business income from investments P manages the investments in state a, which is also its state of commercial docile. both states allocate nonbusiness income and apportion business income using a 3 factor formula in which sales, property and payroll are equally weighted neither state takes lease property into account in computing its property factor.

sales state a 8,000,000 state b 2,000,000 total 10.000,000

property state a 5,000,000 state b 1,000,000 total 6,000,000

average accumulated depreciation state a 1,000,000 state b 500,000 total 1,500,000

rent expense state a 25,000 state b 10,000 total 35,000

payroll state a 2,000,000 state b 500,000 total 2,500,000

determine the current year apportionment percentages for bot states a and b

Answer rating: 100% (QA)

To determine the current year apportionment percentages for states A and B we will use the threefact... View the full answer