Dott Corporation generated $300,000 of state taxable income from selling its mapping software in States A and B.
For the taxable year, the corporation's activities within the two states were as follows: Dott has determined that it is subject to tax in both A and B. Both states utilize a three-factor apportionment formula that equally weights sales, property, and payroll. The rates of corporate income tax imposed in States A and B are
7% and 10%, respectively. Determine Dott's total state income tax liability.
Correct Answer:
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