José Corporation realized $900,000 taxable income from the sales of its products in States X and Z.José's activities in both states establish nexus for income tax purposes.José's sales,payroll,and property among the states include the following. $\begin{array}{llll}
&\textbf{State X} &\textbf{State Z}&\textbf{Totals}\
\text { Sales } & \$ 1,500,000 & \$ 1,000,000 & \$ 2,500,000 \
\text { Property } & 500,000 & -0- & 500,000 \
\text { Payroll } & 2,000,000 & -0- & 2,000,000
\end{array}$ Z utilizes a double-weighted sales factor in its three-factor apportionment formula.How much of José's taxable income is apportioned to Z?

Question

Quizplus · Accepted Answer

Since State Z utilizes a double-weighted sales factor, the apportionment formula takes into account both the sales made within the state and the sales made outside the state. Therefore, the portion of taxable income apportioned to Z would be ($900,000 x sales factor for Z) = ($900,000 x 0.2) = $180,000.

José Corporation Realized $900,000 Taxable Income from the Sales of Its