Solved

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

Question 120

Multiple Choice

Chipper Corporation realized $1,000,000 taxable income from the sales of its products in States X and Z.Chipper's activities establish nexus for income tax purposes only in Z,the state of its incorporation.Chipper's sales,payroll,and property among the states include the following. State XState ZTotals Sales $1,000,000$2,000,000$3,000,000 Property 200,0002,300,0002,500,000 Payroll 100,0001,900,0002,000,000\begin{array}{llll}&\textbf{State X} &\textbf{State Z}&\textbf{Totals}\\\text { Sales } & \$ 1,000,000 & \$ 2,000,000 & \$ 3,000,000 \\\text { Property } & 200,000 & 2,300,000 & 2,500,000 \\\text { Payroll } & 100,000 & 1,900,000 & 2,000,000\end{array} X utilizes a sales-only factor in its three-factor apportionment formula.How much of Chipper's taxable income is apportioned to X?


A) $0.
B) $333,333.
C) $500,000.
D) $1,000,000.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents