Jos Corporation realized $900,000 taxable income from the sales of its products in States X and Z.

José Corporation realized $900,000 taxable income from the sales of its products in States X and Z. José’s activities in both states establish nexus for income tax purposes. José’s sales, payroll, and property among the states include the following. State X State Z Totals Sales $1,500,000 $1,000,000 $2,500,000 Property 500,000 –0– 500,000 Payroll 2,000,000 –0– 2,000,000 X utilizes an equally weighted three-factor apportionment formula. How much of José’s taxable income is apportioned to X?

a. $900,000

b. $120,000

c. $780,000

d. $450,000

Answer rating: 100% (QA)

State X apportionment factor Sales Property Payrol... View the full answer