In: Accounting
Dollin Inc. is incorporated under Virginia law and has its
corporate headquarters in Richmond. Dollin is a distributor; it
purchases tangible goods from manufacturers and sells the goods to
retailers. It has a branch office through which it sells goods in
the United Kingdom and owns 100 percent of a French corporation
(French Dollin) through which it sells goods in France. Dollin’s
financial records provide the following information for the
year:
Before-tax net income from sales: | |||
Domestic sales | $ | 967,900 | |
UK sales (foreign source income) | 415,000 | ||
$ | 1,382,900 | ||
Dividend income: | |||
Brio Inc. | $ | 8,400 | |
French Dollin (foreign source income) | 33,800 | ||
Apportionment Factor | Tax Rate | |||||
Virginia | 43.19 | % | 6.00 | % | ||
North Carolina | 11.02 | % | 7.75 | % | ||
South Carolina | 39.52 | % | 5.00 | % | ||
Refer to the below images for the above mentioned requirements, in a detailed way of solution.