Please show work and explain, I need to understand. Thank you! :) Sharon Inc. is

Question

Please show work and explain, I need to understand. Thank you! :)

Sharon Inc. is headquartered in State X and owns 100 percent of Carol, Josey, and Janice Corps, which form a single unitary group. Assume sales operations are within the solicitation bounds of Public Law 86- 272. Each of the corporations has operations in the following states: Carol Corp State Y Josey Corp State Z Janice Co State Z Sharon Inc. rp State X Domicile State (throwback) (throwback) (nonthrowback) (nonthrowback) 530 54,500 30,500 $ 14,500 $ 78,200 S 16,600 $ 15,400 S 61,250 5,900 $ 28,100 34,750 Dividend income $ 1,340440 $ Business income S15,600 Sales: State X State Y State Z State A State B S 13,600 S 16,300 12,700 S 23,300 $19,000 Property: State X 63,000 25,700 S 84,750 S 14,700 State Y State Z State A Payroll: State X State Y State Z State A $ 33,250 31,250 67,000 12,000 14,000 60,250 $ 18,600 S 18,100 $ 3,350 Compute the following for State X assuming a tax rate of 15 percent. (Be sure to use an equally weighted three-factor apportionment formula. Round your apportionment factors to 4 decimal places. Also round your apportioned business income and tax liability to the nearest dollar amount.) a. Calculate the State X apportionment factor for Sharon Inc., Carol Corp., Josey Corp., and Janice Corp (Leave no answer blank. Enter zeroapplicable.) Apportionment State X factors: Sharon Carol ose 0.00 % Janice

Explanation / Answer

Sharon Carol Josey Janice No Nexus Sales X 78200 16600 15400 13600 Total 120500 105950 56050 42600 Property X 63000 25700 0 14700 Total 130000 110450 33250 58650 Payroll X 12000 14000 0 0 Total 12000 74250 3350 36700 Sales 0.6490 0.1567 0.3192 Property 0.4846 0.2327 0.2506 Payroll 1.0000 0.1886 0.0000 Total 2.1336 0.5779 0.5699 Apportionment Factor (Total /3) 71.12% 19.26% 0.00% 19.00% Income 54500 30500 15600 Apportioned Income          38,760          5,875          2,963 Allocated Income 1340 0 0 State Taxable Income          40,100          5,875          2,963       48,939 Taxable Income 15% Tax Rate          7,341 State Tax Liability

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