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...

60.1K

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 4.5 percent, and State Ns corporate tax rate is 7 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 $ 3,070 $ 8,320 $ 11,390
Payroll expense 1,350 1,500 2,850
Property costs 950 1,270 2,220

Required:

Oldhams before-tax income was $3.40 million. Compute Oldhams State M and State N tax if State N uses an apportionment formula in which the sales factor is double-weighted.

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Consider two bonds. The first is a 6% coupon bond with six years to maturity, and...

Chemistry
1.2K views

Order the following species from the one which binds lead (II) ions least strongly to the...

Psychology
1.2K views

According to the President’s Council on Fitness, Sports & Nutrition (n.d.), “only one in three children...

Biology
1.2K views

Polyploidy can result whena haploid sperm fertilizes a diploid egg.one pair of homologous chromosomes does...

Statistics
1.2K views

Do you carpool Let X represent the number of occupants in a randomly chosen car...

Calculus
1.2K views

The population of a city is expected to grow at the rate of x x...

Algebra
1.2K views

The table below defines f x and g x for certain values of x b...

Accounting
1.2K views

Case Study - You be the Judge. Facts : Between 1923 and 1947,... Case Study...

Accounting
1.2K views

E5-14 Bark Buddy reported the following figures from its adjusted trial balance for...

Accounting
1.2K views

Selected accounts from Lue Company's adjusted trial balance for the year ended December 31 follow....

Accounting
1.2K views

help pls Paoll Consulting is a consulting firm...

Finance
1.2K views

You work for HydroTech, a large manufacturer of high-pressure industrial water pumps. The firm specializes...