4) Raising Popeye's, Inc. has property in two states, East Carolina and West Carolina, that both...

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4) Raising Popeye's, Inc. has property in two states, East Carolina and West Carolina, that both use the UDITPA formula. Property Located in: East Carolina West Carolina $4,500,000/$4,750,000 What are the property factors for Raising Popeye's in East Carolina and West Carolina? Net sales 5) Trombone Satchmo, Inc. conducts business in three states with relevant information as follows: Old York New Maine Old Hampshire $3,500,000 $1,250,000 $2,250,000 Property value (average owned property) $4,000,000 (lease value) 0 Compensation $600,000 State income and tax rates $1,250,000 Historical Cost of Owned Property Beginning/End of Year $800,000/$500,000 8% $2,400,000 $8,000/month $350,000 5% $6,350,000 $225,000/yr Lease Expenses in State $250,000/yr $15,000/month $900,000 9% Old York and Old Hampshire use the UDITPA apportionment formula to compute state taxable income. New Maine doubles the sales factor in its apportionment formula. What is the state income tax liability in the three states? 4) Raising Popeye's, Inc. has property in two states, East Carolina and West Carolina, that both use the UDITPA formula. Property Located in: East Carolina West Carolina $4,500,000/$4,750,000 What are the property factors for Raising Popeye's in East Carolina and West Carolina? Net sales 5) Trombone Satchmo, Inc. conducts business in three states with relevant information as follows: Old York New Maine Old Hampshire $3,500,000 $1,250,000 $2,250,000 Property value (average owned property) $4,000,000 (lease value) 0 Compensation $600,000 State income and tax rates $1,250,000 Historical Cost of Owned Property Beginning/End of Year $800,000/$500,000 8% $2,400,000 $8,000/month $350,000 5% $6,350,000 $225,000/yr Lease Expenses in State $250,000/yr $15,000/month $900,000 9% Old York and Old Hampshire use the UDITPA apportionment formula to compute state taxable income. New Maine doubles the sales factor in its apportionment formula. What is the state income tax liability in the three states?

Answer rating: 100% (QA)

To calculate the property factors for Raising Popeyes Inc in East Carolina and West Carolina we need to determine the property fractions for each stat... View the full answer