In: Accounting
onestoga Corporation operates manufacturing facilities in State P and State Q. In addition, the corporation owns nonbusiness rental property in State Q. Conestoga incurred the following compensation expenses:
|
Sixty percent of the time is spent by the administrative staff located in State Q and 30% of the time spent by officers located in State Q are devoted to the operation, maintenance, and supervision of the rental property. Both states exclude such rent income from the definition of apportionable income.
Round your answers to four decimal places before converting to a percentage. If required, round your final answers to two decimal places.
Conestoga's payroll factor for State P is % and for State Q is %.
Let us calculate everything in % terms first. Based on the information given above we can derive at below table
Owned | Rented | ||
Description | Total | State P | State Q |
Manufacturing Wages | 1100000 | 0.6000 | 0.4000 |
Administrative Wages | 520000 | 0.6538 | 0.3462 |
Office Salaries | 430000 | 0.7000 | 0.3000 |
Factor | 1.9538 | 1.0462 |
Hence by apportioning the given information we can determine the factors of state P and Q now by converting the same in percentage terms we can determine the payroll factor as stated below:
Total Factor | 3.0000 | |||
A | B | C = A/B | ||
State P | 1.9538 | 3.0000 | 0.6513 | Payroll Factor State P |
State Q | 1.0462 | 3.0000 | 0.3487 | Payroll Factor State Q |
Payroll Factor
State P = 0.6513 or 65.13%
State Q = 0.3487 = 34.87%