McKay Corporation operates in two states, as indicated below. This year’s operations generated $300,000 of apportion able income.
|
State A |
State B |
Total |
|
|
Sales |
$600,000 |
$400,000 |
$1,000,000 |
|
Property |
300,000 |
300,000 |
600,000 |
|
Payroll |
200,000 |
50,000 |
250,000 |
Compute McKay’s State A taxable income assuming that State A apportions income based on a:
a. Three factor formula, equally weighted.
b. Double weighted sales factor.
c. Sales factor only.