Oldham, Incorporated conducts business in State M and State N, which both use the UDITPA three-factor formula to apportion income. State M's corporate tax rate is 4.50 percent, and State N's corporate tax rate is 7.00 percent. This year, Oldham had the following sales, payroll, and property (in thousands of dollars) in each state: Gross receipts from sales State M $ 3,900 State N $ 8,400 Total $ 12,300 Payroll expense Property costs 1,700 1,800 2,100 1,900 3,800 3,700 Required: If Oldham's before-tax income was $3.9 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. Total taxable income subject to apportionment Apportionment percentage State taxable income Tax rate State tax State M State N
Oldham, Incorporated conducts business in State M and State N, which both use the UDITPA three-factor formula to apportion income. State M's corporate tax rate is 4.50 percent, and State N's corporate tax rate is 7.00 percent. This year, Oldham had the following sales, payroll, and property (in thousands of dollars) in each state: Gross receipts from sales State M $ 3,900 State N $ 8,400 Total $ 12,300 Payroll expense Property costs 1,700 1,800 2,100 1,900 3,800 3,700 Required: If Oldham's before-tax income was $3.9 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. Total taxable income subject to apportionment Apportionment percentage State taxable income Tax rate State tax State M State N
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 32P
Related questions
Question
A5
Transcribed Image Text:Oldham, Incorporated conducts business in State M and State N, which both use the UDITPA three-factor formula to apportion income.
State M's corporate tax rate is 4.50 percent, and State N's corporate tax rate is 7.00 percent. This year, Oldham had the following sales,
payroll, and property (in thousands of dollars) in each state:
Gross receipts from sales
State M
$ 3,900
State N
$ 8,400
Total
$ 12,300
Payroll expense
Property costs
1,700
1,800
2,100
1,900
3,800
3,700
Required:
If Oldham's before-tax income was $3.9 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.
Total taxable income subject to apportionment
Apportionment percentage
State taxable income
Tax rate
State tax
State M
State N
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