D Corporation operates in two states, Y and Z.Both states impose a state income tax.For the current year, D has taxable income of $5,000,000 (after state adjustments).Such income consists of $4,000,000 of business income and $1,000,000 of nonbusiness income attributable solely to State Y.D conducts sufficient activities in both states to create nexus.Both states allocate nonbusiness income and apportion business income using a three-factor formula.State Y equally weights the three factors, while State Z assigns double weight to the sales factor.The current year factors are as follows: $\begin{array}{lll}&\text { State } Y&\text { State } Z\
\text { Sales } & 80 \% & 20 \% \
\text { Property } & 40 \% & 60 \% \
\text { Payroll } & 60 \% & 40 \%
\end{array}$ What is D's State Z taxable income for the current year.
A)$1,866,666
B)$1,400,000
C)$1,750,000
D)$2,400,000
E)$1,600,000

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The Answer of D Corporation operates in two states, Y and Z.Both states impose a state income tax.For the current year, D has taxable income of $5,000,000 (after state adjustments).Such income consists of $4,000,000 of business income and $1,000,000 of nonbusiness income attributable solely to State Y.D conducts sufficient activities in both states to create nexus.Both states allocate nonbusiness income and apportion business income using a three-factor formula.State Y equally weights the three factors, while State Z assigns double weight to the sales factor.The current year factors are as follows: $\begin{array}{lll}&\text { State } Y&\text { State } Z\
\text { Sales } & 80 \% & 20 \% \
\text { Property } & 40 \% & 60 \% \
\text { Payroll } & 60 \% & 40 \%
\end{array}$ What is D's State Z taxable income for the current year.
A)$1,866,666
B)$1,400,000
C)$1,750,000
D)$2,400,000
E)$1,600,000

D Corporation Operates in Two States, Y and Z What Is D's State Z Taxable Income for the Current