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Palmetto Corporation realized $300,000 of taxable income from the sales of its products in States...

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Accounting

Palmetto Corporation realized $300,000 of taxable income from the sales of its products in States A and B. Palmetto's activities in both states establish nexus for income tax purposes. Palmetto's sales, payroll, and property in the states include the following:

Palmetto Corporation has nexus with States A and B. Apportionable income for the year totals $300,000. Palmetto's apportionment factors for the year use the following data.

State A State B Totals
Sales $540,000 $260,000 $800,000
Property $155,000 $0 $155,000
Payroll $285,000 $0 $285,000

State B uses a sales-factor-only apportionment formula.

In your computations, round any division to three decimal places before converting to a percentage and use rounded amounts in subsequent computations. If required, round your final answer to the nearest dollar.

Compute Palmetto's taxable income for the year; B uses a sales-factor-only apportionment formula.

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