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:
-Tri-State's income for the current year is $250,000. Approximately how much will be taxed by Kansas?

Question

Quizplus · Accepted Answer

$250,000 × 12.8% ($100,000/$500,000 + $20,000/$180,000 + $50,000/$700,000)/3.
 $$\begin{array} { l r r r r r } 
& \text { Arkansas } & \text { Oklahoma } & { \text { Kansas } } & \text { Total } \
\text { Gross receipts/sales } & \$ 175,000 & \$ 225,000 & \$ 100,000 & \$ 500,000 \
\text { Payroll } & 20,000 & 140,000 & 20,000 & 180,000 \
\text { Property } & 50,000 & 600,000 & 50,000 & 700,000
\end{array}$$