Milt Corporation Owns and Operates Two Facilities That Manufacture Paper

question 101

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 $1,500,000 of taxable income,comprised of $1,000,000 of income from its manufacturing facilities and a $500,000 gain from the sale of nonbusiness property located in E.E does not distinguish between business and nonbusiness property,but D limits apportionable income to business income.Milt's activities within the two states are outlined below.

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:

Putting Clothes

The act of placing or dressing oneself in garments, often considered as a basic daily activity and skill.

Circadian Rhythms

Physical, mental, and behavioral changes that follow a 24-hour cycle, primarily influenced by light and darkness in an organism's environment.

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The basic physical and functional units of heredity, made up of DNA, that determine specific characteristics by encoding proteins.

Environmental Factors

External influences that can affect the development, behavior, and survival of organisms, including climate, geography, pollutants, and socioeconomic conditions.