A service engineer spends 60% of her time maintaining the employer's productive business property and 40% maintaining the employer's nonbusiness rental properties.This year, her compensation totaled $90,000.The payroll factor assigns $54,000 to the state in which the employer is based.

Question

Quizplus · Accepted Answer

Since the service engineer spends 60% of her time maintaining the employer's productive business property and 40% maintaining the employer's nonbusiness rental properties, we can assume that her compensation is allocated in the same proportion.

60% of $90,000 = $54,000 allocated to the productive business property 
40% of $90,000 = $36,000 allocated to the nonbusiness rental properties

Thus, the payroll factor assigns $54,000 to the state in which the employer is based, which is consistent with the compensation allocated to the productive business property. Therefore, the statement is true.

A Service Engineer Spends 60% of Her Time Maintaining the Employer's