Net Corporation's sales office and manufacturing plant are located in State X.Net also maintains a manufacturing plant and sales office in State W.For purposes of apportionment,X defines payroll as all compensation paid to employees,including contributions to § 401(k) deferred compensation plans.Under the statutes of W,neither compensation paid to officers nor contributions to § 401(k) plans are included in the payroll factor.Net incurred the following personnel costs.
Net's payroll factor for State W is:
A) 50.00%.
B) 28.57%.
C) 26.32%.
D) 20.00%.
E) 0%.
Correct Answer:
Verified
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