Norman Corporation owns and operates two manufacturing facilities,one in State X and the other in State Y.Due to a temporary decline in the corporation's sales,Norman has rented 20% of its Y facility to an unaffiliated corporation.Norman generated $600,000 net rental income and $2,400,000 income from manufacturing.
For X and Y purposes,rental income is classified as allocable nonbusiness income.By applying the statutes of each state,Norman determined that its apportionment factors are .75 for X and .25 for Y.
Norman's income attributed to X is:
A) $0.
B) $1,800,000.
C) $2,250,000.
D) $2,400,000.
E) $3,000,000.
Correct Answer:
Verified
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