Albany,Inc

question 90

Multiple Choice

Albany,Inc.does business in states C and D.State C uses an apportionment formula that double-weights the sales factor; state D 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. 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,$1,200,000; State D,$1,900,000.

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Definitions:

Utility

The total satisfaction or benefit received from consuming a good or service.

Place Utility

The value added to products by having them available at the location where they are needed or desired by consumers.

Boarding Pass

A document provided by an airline during check-in, granting a passenger permission to enter the secure area of an airport and board a specific flight.

Service Station

A facility dedicated to the sale of gasoline and often providing maintenance and repair services for vehicles.