Cruz Corporation Owns Manufacturing Facilities in States A, B, and C.A

question 106

Multiple Choice

Cruz 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. Cruz'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. $$\begin{array} { l r r r r } & \text { State A } & \text { State B } & \text { State C } & \text { Totals } \\\text { Sales } & \$ 400,000 & \$ 800,000 & \$ 300,000 & \$ 1,500,000 \\\text { Payroll } & 100,000 & 150,000 & 50,000 & 300,000 \\\text { Property } & 200,000 & 200,000 & 200,000 & 600,000\end{array}$$ ?
Cruz's apportionable income assigned to C is:

• A)$1,000,000.
• B)$273,333.
• C)$200,000.
• D)$0.

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