Albany, Inc Calculate Albany's Income Taxable in Each State

question 88

Multiple Choice

Albany, Inc. does business in states C andD. 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. $$\begin{array} { | l | c | c | } \hline & C & D \\\hline \text { Sales factor } & 50 \% & 50 \% \\\hline \text { Payroll factor } & 40 \% & 60 \% \\\hline \text { Property factor } & 20 \% & 80 \% \\\hline\end{array}$$ 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, $1,200,000; State D, $1,900,000

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