Simpkin Corporation Owns Manufacturing Facilities in States A, B, and C

question 29

Multiple Choice

Simpkin 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.
Simpkin'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.
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Simpkin's apportionable income assigned to B is:

• A) $1,000,000.
• B) $533,333.
• C) $475,000.
• D) $0.

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