Lido Inc. does business in two states, X and Y. State X uses an equal-weighted three factor

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Lido Inc. does business in two states, X and Y. State X uses an equal-weighted three factor apportionment formula and has a 4 percent state tax rate. State Y bases its apportionment only on the sales factor and has a 5 percent state tax rate. Lido's state-level taxable income before apportionment is $1,750,000. Based on the following apportionment information, calculate Lido's apportionment factors, income apportioned to each state, and state tax liability.

State X State Y Total Sales Payroll Average property $1,300,000 800,000 $4,600,000 1,200,000 2,200,000 $5,900,000 2,000,
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Principles Of Taxation For Business And Investment Planning 2018

ISBN: 9781259713729

21st Edition

Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan

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