Wick Corporation, which is domiciled in state X, is also engaged in business in state Y. In the current year, Wick Corp. generated $1,000,000 in business income. Wick Corp. had the following factors:

Apportionment State X State Y

Property 650,000 100,000

Payroll 1,200,000 300,000

Sales 4,500,000 500,000

In addition, Wick Corp. also held an interest in Continental LLP, which is treated as a partnership for federal and state income tax purposes. Wick Corp.’s ownership interest in Continental is 60-percent profits interest and an 80-percent capital interest.

Continental also generated $1,000,000 in business income, and had the following apportionment factors:

Apportionment State X State Y

Property 350,000 250,000

Payroll 225,000 125,000

Sales 2,000,000 1,000,000

28. Under the Unitary method, what is Wick Corp.’s total income subject to apportionment:

a) $1,000,000

b) $2,000,000

c) $1,600,000

d) $1,800,000

29. Under the Unitary method, what is Wick Corp.’s State Y apportionment ratio:

a) 14.44%

b) 13.33%

c) 24.39%

d) 21.48% 30.

30. Based on the apportionment ratio computed in Question 29, above, what is Wick Corp’s total State Y apportioned income:

a) $386,640

b) $390,240

c) $343,625

d) $266,600

31. What would Wick Corp.’s total apportioned income to State Y be under the Non Unitary method:

a) $365,873

b) $369,000

c) $744,400

d) $259,920

Answer rating: 100% (QA)

28 Total income of Wick corp for apportionment 1600000 Particulars Amount Profit percentage Total ... View the full answer