Wacky Wendy produces gourmet cheese in Wisconsin. Wendy has sales as follows: Wendy is a Wisconsin Corporation and has the following operations:
Wendy has income tax nexus in Iowa, Minnesota, and Wisconsin. The Michigan sales are shipped from Wisconsin (a throwback state). $100,000 of the Wisconsin sales were to the federal government. What is Wendy's Wisconsin sale numerator?

Question

Wacky Wendy produces gourmet cheese in Wisconsin. Wendy has sales as follows:  Wendy is a Wisconsin Corporation and has the following operations:
Wendy has income tax nexus in Iowa, Minnesota, and Wisconsin. The Michigan sales are shipped from Wisconsin (a throwback state). $100,000 of the Wisconsin sales were to the federal government. What is Wendy's Wisconsin sale numerator?

Quizplus · Accepted Answer

$1,457,621 = $1,323,032 + $134,589. The Michigan sales are thrownback to Wisconsin since Wendy doesn't have income tax nexus in Michigan. Additionally, the government sales are sourced (not thrownback to) in the state from which they were shipped.

Wacky Wendy Produces Gourmet Cheese in Wisconsin