Cruz Corporation owns manufacturing facilities in States A,B,and C.A uses a three-factor apportionment formula under which the sales,property and payroll factors are equally weighted.B uses a three-factor apportionment formula under which sales are double-weighted.C employs a single-factor apportionment factor,based solely on sales. Cruz's operations generated $1,000,000 of apportionable income,and its sales and payroll activity and average property owned in each of the three states is as follows. State A State B State C Totals Sales $400,000 $800,000 $300,000 $1,500,000 Payroll 100,000 150,000 50,000 300,000 Property 200,000 200,000 200,000 600,000 Cruz's apportionable income assigned to C is:

Question

Cruz Corporation owns manufacturing facilities in States A,B,and C.A uses a three-factor apportionment formula under which the sales,property and payroll factors are equally weighted.B uses a three-factor apportionment formula under which sales are double-weighted.C employs a single-factor apportionment factor,based solely on sales. Cruz's operations generated $1,000,000 of apportionable income,and its sales and payroll activity and average property owned in each of the three states is as follows. State A State B State C Totals Sales $400,000 $800,000 $300,000 $1,500,000 Payroll 100,000 150,000 50,000 300,000 Property 200,000 200,000 200,000 600,000 ​ Cruz's apportionable income assigned to C is:

Quizplus · Accepted Answer

State C uses a single-factor apportionment based solely on sales. The sales in State C are $300,000 out of a total of $1,500,000. Therefore, the apportionment percentage is $300,000 / $1,500,000 = 0.2. Applying this to the total apportionable income of $1,000,000 gives $1,000,000 * 0.2 = $200,000.

Cruz Corporation Owns Manufacturing Facilities in States A,B,and C