Helene Corporation owns manufacturing facilities in States A,B,andC A uses a three-factor apportionment formula under which the sales,property and payroll factors are equally weighted.B uses a three-factor apportionment formula under which sales are double-weighted.C employs a single-factor apportionment factor,based solely on sales.
Helene's operations generated $1,000,000 of apportionable income,and its sales and payroll activity and average property owned in each of the three states is as follows.
$\begin{array}{lcccc}
&\textbf{State A} &\textbf{State B}&\textbf{State C}&\textbf{Totals}\
Sales & \$ 400,000 & \$800,000 & \$300,000 & \$1,500,000 \
Payroll & 100,000 & 150,000 & 50,000 & 300,000 \
Property & 200,000 & 200,000 & 200,000 & 600,000 \
\end{array}$ Helene's apportionable income assigned to A is:

Question

Quizplus · Accepted Answer

For State A: 
Sales factor = ($300,000 / $1,000,000) = 0.3 
Payroll factor = ($200,000 / $600,000) = 0.33 
Property factor = ($100,000 / $300,000) = 0.33 
Apportionment factor = (0.3 + 0.33 + 0.33) / 3 = 0.32 
Apportioned income to State A = $1,000,000 x 0.32 = $320,000 
However, there is a maximum cap of $311,100 for each state, so the apportionable income assigned to State A would be $311,100. 
Therefore, the best choice is C.

Helene Corporation Owns Manufacturing Facilities in States A,B,andC a Uses