Mandy Corporation realized $1,000,000 taxable income from the sales of its products in States X and Z.Mandy's activities establish nexus for income tax purposes only in Z.Mandy's sales,payroll,and property among the states include the following. X utilizes a sales-only factor in its three-factor apportionment formula.How much of Mandy's taxable income is apportioned to X?

Question

Mandy Corporation realized $1,000,000 taxable income from the sales of its products in States X and Z.Mandy's activities establish nexus for income tax purposes only in Z.Mandy's sales,payroll,and property among the states include the following.  X utilizes a sales-only factor in its three-factor apportionment formula.How much of Mandy's taxable income is apportioned to X?

Quizplus · Accepted Answer

Since Mandy only has nexus in State Z, only State Z's apportionment factors will be considered. State X's sales-only factor will not be utilized since Mandy does not have nexus in that state. Therefore, none of Mandy's taxable income will be apportioned to State X.

Mandy Corporation Realized $1,000,000 Taxable Income from the Sales of Its