Mandy Corporation realized $1,000,000 taxable income from the sales of its products in States X and Z.Mandy's activities establish nexus for income tax purposes only in Z.Mandy's sales,payroll,and property among the states include the following. X utilizes a sales-only factor in its three-factor apportionment formula.How much of Mandy's taxable income is apportioned to X?

Question

Mandy Corporation realized $1,000,000 taxable income from the sales of its products in States X and Z.Mandy's activities establish nexus for income tax purposes only in Z.Mandy's sales,payroll,and property among the states include the following.  X utilizes a sales-only factor in its three-factor apportionment formula.How much of Mandy's taxable income is apportioned to X?

Quizplus · Accepted Answer

Since Mandy only has nexus in State Z, only State Z's apportionment formula will be used to determine how much of Mandy's taxable income is apportioned to each state. Therefore, State X's sales-only factor is irrelevant and Mandy's taxable income is apportioned entirely to State Z.

Mandy Corporation Realized $1,000,000 Taxable Income from the Sales of Its