Accounting -Sharon Inc. is headquartered in State X and owns 100 percent of Carol, Josey

January 31, 2017

Question
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:

Domicile State Sharon Inc.
State X
(throwback) Carol Corp
State Y
(throwback) Josey Corp
State Z
(nonthrowback) Janice Corp
State Z
(nonthrowback)
Dividend income \$ 1,030 \$ 560 \$ 420 \$ 400
Business income \$ 40,000 \$ 45,250 \$ 16,400 \$ 16,200
Sales: State X \$ 83,200 \$ 19,500 \$ 11,900 \$ 12,200
State Y \$ 50,750 \$ 9,350
State Z \$ 30,000 \$ 39,000 \$ 11,900
State A \$ 34,000
State B \$ 15,500 \$ 11,500
Property: State X \$ 70,500 \$ 27,400 \$ 10,200
State Y \$ 102,250
State Z \$ 42,000 \$ 30,500
State A \$ 69,500
Payroll: State X \$ 17,600 \$ 14,500
State Y \$ 63,250
State Z \$ 5,100 \$ 13,400
State A \$ 16,000

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.

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.

Get a 30 % discount on an order above \$ 50
Use the following coupon code:
COCONUT
Positive SSL