Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. oldham, incorporated conducts business in state m

Oldham, Incorporated conducts business in State M and State N, which both use the UDITPA...

80.2K

Verified Solution

Question

Accounting

Oldham, Incorporated conducts business in State M and State N, which both use the UDITPA three-factor formula to apportion income. State Ms corporate tax rate is 3.50 percent, and State Ns corporate tax rate is 6.50 percent. This year, Oldham had the following sales, payroll, and property (in thousands of dollars) in each state:

State M State N Total
Gross receipts from sales $ 4,600 $ 9,100 $ 13,700
Payroll expense 2,400 2,800 5,200
Property costs 2,500 2,600 5,100

Required:

If Oldhams before-tax income was $4.6 million, compute its State M and State N tax.

Note: Round all apportionment factors to 4 decimal places, e.g., 47.15% would be 0.4715. Enter "Apportionment percentage" and "Tax rate" in decimals and not in percentage. Do not round any intermediate values. Enter your answers in dollars and not in millions or thousands of dollars.

State M State N
Total taxable income subject to apportionment
Apportionment percentage
State taxable income
Tax rate
State tax

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

why differential signal cancels inductance? thanks

Electrical Engineering
Q

I'm having trouble distinguishing which of the interest rates, either nominal or real, central banks are...

Economics
Q

(1) what impact do you think resume screening tools are having on HR departments? what about...

Operations Management
Q

Hi there, We want to make a correct formulation of the problem that want to apply Linear...

General Management
Q

Identifying corresponding and alternate Give a pair of alternate exterior angles a pair 2 m

Geometry
Q

Some farmers use a circular irrigation method An irrigation arm acts as the radius of...

Basic Math
Q

em 2 Consider the symmetric matrix 9 0 0 0 3 0 M 3 0...

Algebra
Q

Navarre Energy Research specializes in developing and commerclalizing new products. It...

Accounting
Q

Brief Exercise 11-16 (Algo) Error correction [LO11-7] At the beginning of 2022 , Robotics Incorporated...

Accounting
Q

On September 30, year 2, fire at Brock Companys only warehouse caused severe damage to...

Accounting
Q

Just write the answers please The following...

Accounting
Q

The market value of the equity of Thompson, Inc., is $530,000. The balance sheet shows...

Accounting