Indicate whether each of the following items should be allocated or apportioned
ID: 2599977 • Letter: I
Question
Indicate whether each of the following items should be allocated or apportioned by the taxpayer in computing state corporate taxable income. Assume that the state follows the general rules of UDITPA.
a. Profits from sales activities.
b. Profits from consulting and other service activities.
c. Losses from sales activities.
d. Profits from managing the stock portfolio of a client.
e. Profits from managing one’s own stock portfolio.
f. Gain on the sale of a plot of land held by a real estate developer.
g. Gain on the sale of a plot of land held by a manufacturer, on which it may
expand its factory.
h. Rent income received by a manufacturer from the leasing of space to a supplier.
Explanation / Answer
Answer :-
Situation Allocated / Apportioned a). Apportioned. b). Apportioned. c). Apportioned. d). Apportioned. e). Neither apportioned nor allocated. f). Apportioned. g). Allocated. h). Apportioned.