Use Exhibit 16.1 to provide the required information for Warbler Corporation, whose Federal taxable income totals $10 million. Warbler apportions 70% of its manufacturing income to State C. Warbler generates $4 million of nonapportionable income each year, and 30% of that income is allocated to C. Applying the state income tax modifications, Warbler’s total business income from the manufacturing operation this year is $12 million.
a. How much of Warbler’s manufacturing income does State C tax?
b. How much of Warbler’s allocable income does State C tax?
c. Explain your results.

  • CreatedSeptember 09, 2015
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