Net Corporation's sales office and manufacturing plant are located in State X. Net also maintains a manufacturing plant and sales office in State W. For purposes of apportionment, X defines payroll as all compensation paid to employees, including contributions to § 401(k) deferred compensation plans. Under the statutes of W, neither compensation paid to officers nor contributions to § 401(k) plans are included in the payroll factor. Net incurred the following personnel costs.
Net's payroll factor for State W is:
A) 50.00%.
B) 28.57%.
C) 26.32%.
D) 20.00%.
E) 0%.
Correct Answer:
Verified
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