Albany, Inc $\begin{array}{lr}&C&D\\\text {Sales factor }&50\%&50\%\\\text { Payroll factor}&40\%&60\%\\\text {Property factor }&10\%&80\%\\\end{array}$

question 38

Multiple Choice

Albany, Inc. does business in states C and D. State D uses an apportionment formula that double-weights the sales factor; state C apportions income using an equally-weighted three-factor formula. Albany's before tax income is $3,000,000, and its sales, payroll, and property factors are as follows. $\begin{array}{lr}&C&D\\\text {Sales factor }&50\%&50\%\\\text { Payroll factor}&40\%&60\%\\\text {Property factor }&10\%&80\%\\\end{array}$
Calculate Albany's income taxable in each state.

• A) State C, $1,100,000; State D, $1,800,000.
• B) State C, $1,100,000; State D, $1,900,000.
• C) State C, $1,200,000; State D, $1,800,000.
• D) State C, $1,300,000; State D, $1,700,000.

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Definitions:

Mourning Wars

Traditional wars waged by Eastern Woodlands Native American groups to avenge the death of a loved one by seeking captives from other tribes.

Caravel

A type of small, highly maneuverable sailing ship developed by the Portuguese in the late 15th century, instrumental in exploration and trade.

Feitoria

historical term for Portuguese trade posts or fortresses established from the 15th century onwards across Africa, Asia, and Brazil for trade and to spread Christianity.

Irrigation Systems

Engineered networks of pumps, canals, barriers, and ditches designed to transport water to agricultural fields to support crop growth in areas lacking sufficient rainfall.