Given the following transactions for the year, determine Comp Corporation's D payroll factor denominator.State D has adopted the principles of UDITPA.

Question

Quizplus · Accepted Answer

The denominator of the payroll factor under UDITPA is the total compensation paid by the taxpayer during the taxable year in the state. None of the transactions provided indicate any compensation paid by Comp Corporation. Therefore, the denominator would be zero. However, UDITPA requires a minimum denominator of $600,000 in order to prevent distortion of the payroll factor for taxpayers with low payroll. Therefore, the correct answer is D, $600,000.

Given the Following Transactions for the Year, Determine Comp Corporation's