Cruz Corporation owns manufacturing facilities in States A,B,and C. A uses a three-factor apportionment formula under which the sales,property and payroll factors are equally weighted.B uses a three-factor apportionment formula under which sales are double-weighted.C employs a single-factor apportionment factor,based solely on sales.
Cruz's operations generated $1,000,000 of apportionable income,and its sales and payroll activity and average property owned in each of the three states is as follows.
Cruz's apportionable income assigned to C is:
A) $1,000,000.
B) $273,333.
C) $200,000.
D) $0.
Correct Answer:
Verified
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