Tri-State's, Inc. operates in Arkansas, Oklahoma, and Kansas. Assume that each state has adopted the UDITPA formula. During the corporation's tax year ended December 31, the apportionment data indicated: Which of the following statements is true?

Question

Tri-State's, Inc. operates in Arkansas, Oklahoma, and Kansas. Assume that each state has adopted the UDITPA formula. During the corporation's tax year ended December 31, the apportionment data indicated:  Which of the following statements is true?

Quizplus · Accepted Answer

According to the provided apportionment data:

Sales factor for Arkansas = ($700,000 / $2,000,000) x 100 ≈ 35%
Payroll factor for Arkansas = ($160,000 / $1,440,000) x 100 ≈ 11.1%
Property factor for Arkansas = ($100,000 / $1,400,000) x 100 ≈ 7.14%

Therefore, all of the above factors for Arkansas are correct.