José Corporation Realized $900,000 Taxable Income from the Sales of Its

question 29

Multiple Choice

José Corporation realized $900,000 taxable income from the sales of its products in States X and Z.José's activities in both states establish nexus for income tax purposes.José's sales, payroll, and property among the states include the following. $$\begin{array} { l r r r } & \text { StateX } & \text { State Z } & \text { Totals } \\\text { Sales } & \$ 1,500,000 & \$ 1,000,000 & \$ 2,500,000 \\\text { Property } & 500,000 & - 0 - & 500,000 \\\text { Payroll } & 2,000,000 & - 0 - & 2,000,000\end{array}$$ ? X utilizes an equally weighted three-factor apportionment formula.How much of José's taxable income is apportioned to X?

• A)$120,000
• B)$450,000
• C)$780,000
• D)$900,000

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Definitions:

65 Years

A time period equivalent to sixty-five years, often referenced in discussions of age or time to retirement.

Common Stock

A type of security that represents ownership in a corporation and gives holders voting rights, as well as a share in the company's profits via dividends.

Per Year

A term indicating something occurs, is measured, or is evaluated on an annual basis.

8 Years

A period or duration of eight calendar years.