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: $$\begin{array} { | l | r | r | r | r | }
\hline & { \text { Arkansas } } & { \text { Oklahoma } } & { \text { Kansas } } & { \text { Total } } \
\hline \text { Gross receipts/sales } & \$ 175,000 & \$ 225,000 & \$ 100,000 & \$ 500,000 \
\hline \text { Payroll } & 20,000 & 140,000 & 20,000 & 180,000 \
\hline \text { Property } & 50,000 & 600,000 & 50,000 & 700,000 \
\hline
\end{array}$$ Which of the following statements is true?

Question

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: $$\begin{array} { | l | r | r | r | r | } 
\hline &  { \text { Arkansas } } &  { \text { Oklahoma } } &  { \text { Kansas } } &  { \text { Total } } \
\hline \text { Gross receipts/sales } & \$ 175,000 & \$ 225,000 & \$ 100,000 & \$ 500,000 \
\hline \text { Payroll } & 20,000 & 140,000 & 20,000 & 180,000 \
\hline \text { Property } & 50,000 & 600,000 & 50,000 & 700,000 \
\hline
\end{array}$$ Which of the following statements is true?

Quizplus · Accepted Answer

To calculate the apportionment factors for each state, we need to use the UDITPA formula, which is:
Apportionment Factor = (Property Factor + Payroll Factor + Sales Factor) ÷ 3

Let's calculate the factors for Arkansas:

Property Factor = $50,000 ÷ $700,000 = 0.0714 or approximately 7.14%
Payroll Factor = $20,000 ÷ $180,000 = 0.1111 or approximately 11.1%
Sales Factor = $175,000 ÷ $500,000 = 0.35 or 35%

Therefore, all of the above factors for Arkansas are correct, and the answer is D.

Tri-State's, Inc Which of the Following Statements Is True? A) the Sales

Tri-State's, Inc Which of the Following Statements Is True?
A) the Sales