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

Question

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The payroll factor denominator is computed as the total compensation paid or incurred by the taxpayer during the taxable year both inside and outside the state divided by the total compensation paid or incurred by the taxpayer everywhere during the taxable year. Therefore, we need to determine the total compensation paid or incurred by Comp Corporation during the taxable year. None of the given transactions relate to compensation, so we cannot directly determine the numerator. However, we know that the denominator is computed based on total compensation paid or incurred by the taxpayer everywhere during the taxable year, so it is not affected by the specific transactions given. Therefore, the denominator is simply the total compensation paid or incurred by Comp Corporation during the taxable year both inside and outside the state. The closest option to that effect is D) $600,000.

Given the Following Transactions for the Year,determine Comp Corporation's D