Milt Corporation Owns and Operates Two Facilities That Manufacture Paper

question 116

Essay

Milt Corporation owns and operates two facilities that manufacture paper products.One of the facilities is located in State D,and the other is located in State E.Milt generated $1,200,000 of taxable income,comprised of $1,000,000 of income from its manufacturing facilities and a $200,000 gain from the sale of nonbusiness property located in E.E does not distinguish between business and nonbusiness property.D apportions business income.Milt's activities within the two states are outlined below. ​ State D State E Total Sales of paper products $4,500,000 $1,500,000 $6,000,000 Property 3,500,000 2,500,000 6,000,000 Payroll 1,500,000 1,000,000 2,500,000 ​ Both D and E utilize a three-factor apportionment formula,under which sales,property,and payroll are equally weighted.Determine the amount of Milt's income that is subject to income tax by each state.

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Definitions:

Organizational Flexibility

The ability of an organization to adapt to changes, restructure operations, and innovate to meet new challenges.

Complexity

Refers to the state of having multiple interconnected parts, which may make a system or process difficult to understand, predict, or manage.

Environmental Opportunities

Circumstances or factors in the external environment that a business or individual can exploit for benefit.

Politicized

Having a situation, issue, or organization becomes influenced by political considerations or actions, often leading to a shift in focus or operation.