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Which of the Following Statements About the Uniform Division of Income

Question 48

Multiple Choice

Which of the following statements about the Uniform Division of Income for Tax Purposes Act (UDITPA) is false?


A) UDITPA requires all states to use the same method for apportioning income of multistate businesses.
B) UDITPA recommends an equally-weighted three-factor formula for apportioning income of multistate businesses.
C) The UDITPA property factor equals the cost of real or tangible personal property located in a state divided by the total cost of such property.
D) The UDITPA payroll factor equals the compensation paid to employees working in a state divided by total compensation.

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