Question

Sharon Inc. is headquartered in State X and owns 100 percent of Carol Corp., Josey Corp., and Janice Corp., 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:

Domicile State		Sharon Inc. State X (throwback)		Carol Corp. State Y (throwback)		Josey Corp. State Z (nonthrowback)		Janice Corp. State Z (nonthrowback)
Dividend income		$	1,460	$	295	$	610	$	520
Business income		$	52,200	$	32,500	$	18,100	$	19,000
Sales:	State X	$	88,200	$	13,500	$	16,400	$	16,800
	State Y			$	45,250	$	8,700
	State Z			$	23,100	$	44,250	$	16,800
	State A	$	29,500
	State B	$	19,300					$	19,000
Property:	State X	$	72,500	$	26,800			$	13,000
	State Y			$	97,500
	State Z					$	41,500	$	35,750
	State A	$	60,500
Payroll:	State X	$	15,100	$	18,900
	State Y			$	58,750
	State Z					$	5,650	$	16,200
	State A							$	19,700

Compute the following for State X assuming a tax rate of 15 percent. (Use an equally weighted three-factor apportionment. Round all apportionment factors to 4 decimal places. Round other answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.)

a. Calculate the State X apportionment factor for Sharon Inc., Carol Corp., Josey Corp., and Janice Corp.

b. Calculate the business income apportioned to State X.

c. Calculate the taxable income for State X for each company.

d. Determine the tax liability for State X for the entire group.

Answer 1