Tri-State's, Inc. operates in Arkansas, Oklahoma, and Kansas. Assume that each state has adopted the UDITPA formula. During the corporation's tax year ended December 31, the apportionment data indicated:
-Which of the following statements is true?

Question

Quizplus · Accepted Answer

Sales factor is = 35% = $175,000/$500,000.
Payroll factor = 11.1% = $20,000/$180,000.
Property factor = 7.14% = $50,000/$700,000.
Apportionment percentage = 17.75% (35% + 7.14% + 11.1%)/3.
 $\begin{array} { l r r r r l } 
& \text { Arkansas } & \text { Oklahoma } &  { \text { Kansas } } & \text { Total } \
\text { Gross receipts/sales } & \$ 175,000 & \$ 225,000 & \$ 100,000 & \$  500,000 \
\text { Payroll } & 20,000 & 140,000 & 20,000 & 180,000 \
\text { Property } & 50,000 & 600,000 & 50,000 & 700,000
\end{array}$