Given the Following Transactions for the Year, Determine Comp Corporation's

question 45

Multiple Choice

Given the following transactions for the year, determine Comp Corporation's D payroll factor denominator. State D has adopted the principles of UDITPA. $$\begin{array} { l r } \text { Compensation of sales force } & \$ 600,000 \\\text { Compensation paid to independent contractors } & 300,000 \\\text { Compensation paid to managers of nonbusiness rental property } & 100,000 \\\text { Total compensation } & \mathbf { \$ 1 , 0 0 0 , 0 0 0 }\end{array}$$

• A)$1,000,000
• B)$900,000
• C)$700,000
• D)$600,000

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Definitions:

Losses

The negative financial impact that occurs when expenses exceed revenues, or due to unforeseen events or damages.

Mutual Mistake

An error shared by all parties in a contract, leading to a misunderstanding regarding a fundamental fact or element of the agreement.

Fraud

Deliberate deception or misrepresentation intended to result in an unfair or unlawful gain.

Reformation

A legal remedy where a written agreement is officially corrected or amended to accurately reflect the true intentions of the parties involved.