Adams Corporation Owns and Operates Two Manufacturing Facilities, One in State

question 60

Multiple Choice

Adams Corporation owns and operates two manufacturing facilities, one in State X and the other in State Y. Due to a temporary decline in the corporation's sales, Adams has rented 20% of its Y facility to an unaffiliated corporation. Adams generated $1,000,000 net rental income and $5,000,000 income from manufacturing. Adams is incorporated in Y. For X and Y purposes, rental income is classified as allocable nonbusiness income. By applying the statutes of each state, Adams determined that its apportionment factors are .65 for X and .35 for Y.
Adams's income attributed to X is:

• A) $0.
• B) $3,250,000.
• C) $3,900,000.
• D) $5,000,000.
• E) $6,000,000.

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Definitions:

Conditional Compilation

A feature in some programming languages that allows the compiler to include or exclude portions of code based on certain conditions.

#ifndef Condition

A preprocessor directive in C/C++ used to check if a specific identifier is not defined before including or skipping part of the code.

#ifdef !condition

A preprocessor directive used in C/C++ programming to include or exclude code blocks based on whether a condition is not met.

Enumerated List

A data structure that consists of a set of named integer constants, often used to assign names to integral values for clarity.