TAXATION OF INDIVIDUALS &
BUSINESS ENTITIES CH. 23 QUESTIONS
WITH VERIFIED ANSWERS 2024
ApportionmentK-KcorrectKanswer-
isKtheKmeansKbyKwhichKbusinessKincomeKisKdividedKamongKstatesKinKwhichKitKconductsKbusiness.
AllocationK-KcorrectKanswer-
isKaKmethodKusedKdirectlyKassignKspecificKcomponentsKofKaKcorporation'sKincome,KnetKofKrelatedKexpenses,
KtoKaKspecificKstate.
ApportionmentKFactors:KElementsKandKPlanningK-KcorrectKanswer-
traditionalKthreeKfactorKformulaKequallyKweighsKsales,Kproperty,KandKpayrollKfactors.
SalesKFactorK-KcorrectKanswer--NumeratorKisKaKcorporation'sKsalesKinKtheKstate
-DenominatorKisKaKcorporation'sKtotalKsalesKeverywhere
ThrowKbackKruleK-KcorrectKanswer-requiresKthatKout-of-
stateKsalesKnotKsubjectKtoKtaxKinKdestinationKstateKbeKpulledKbackKintoKoriginationKstate
PayrollKFactorK-KcorrectKanswer--NumeratorKisKcompensationKpaidKwithinKaKstate
-DenominatorKisKtotalKcompensationKpaidKbeKtheKcorporation
isKdeterminedKbyKcomparingKcompensationKpaidKforKservicesKrenderedKwithinKaKstateKtoKtheKtotalKcompen
sationKpaidKbyKtheKcorporation
PropertyKFactorK-KcorrectKanswer--
NumeratorKisKtheKaverageKvalueKofKtheKcorporation'sKrealKandKtangibleKpersonalKpropertyKusedKorKrentedKi
nKtheKstate
BUSINESS ENTITIES CH. 23 QUESTIONS
WITH VERIFIED ANSWERS 2024
ApportionmentK-KcorrectKanswer-
isKtheKmeansKbyKwhichKbusinessKincomeKisKdividedKamongKstatesKinKwhichKitKconductsKbusiness.
AllocationK-KcorrectKanswer-
isKaKmethodKusedKdirectlyKassignKspecificKcomponentsKofKaKcorporation'sKincome,KnetKofKrelatedKexpenses,
KtoKaKspecificKstate.
ApportionmentKFactors:KElementsKandKPlanningK-KcorrectKanswer-
traditionalKthreeKfactorKformulaKequallyKweighsKsales,Kproperty,KandKpayrollKfactors.
SalesKFactorK-KcorrectKanswer--NumeratorKisKaKcorporation'sKsalesKinKtheKstate
-DenominatorKisKaKcorporation'sKtotalKsalesKeverywhere
ThrowKbackKruleK-KcorrectKanswer-requiresKthatKout-of-
stateKsalesKnotKsubjectKtoKtaxKinKdestinationKstateKbeKpulledKbackKintoKoriginationKstate
PayrollKFactorK-KcorrectKanswer--NumeratorKisKcompensationKpaidKwithinKaKstate
-DenominatorKisKtotalKcompensationKpaidKbeKtheKcorporation
isKdeterminedKbyKcomparingKcompensationKpaidKforKservicesKrenderedKwithinKaKstateKtoKtheKtotalKcompen
sationKpaidKbyKtheKcorporation
PropertyKFactorK-KcorrectKanswer--
NumeratorKisKtheKaverageKvalueKofKtheKcorporation'sKrealKandKtangibleKpersonalKpropertyKusedKorKrentedKi
nKtheKstate