Trayne Corporation's sales office and manufacturing plant are located in State X.Trayne also maintains a manufacturing plant and sales office in State W.For purposes of apportionment,X defines payroll as all compensation paid to employees,including elective contributions to § 401(k) deferred compensation plans.Under the statutes of W,neither compensation paid to officers nor contributions to § 401(k) plans are included in the payroll factor.Trayne incurred the following personnel costs.
Trayne's payroll factor for State X is:
A) 100.00%.
B) 80.00%.
C) 73.68%.
D) 71.43%.
E) 50.00%.
Correct Answer:
Verified
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