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Delicious Dave’s Maple Syrup, a Vermont corporation, has property in the following states: Property State Beginning...

Delicious Dave’s Maple Syrup, a Vermont corporation, has property in the following states: Property State Beginning Ending Maine $ 979,746 $ 1,052,867 Massachusetts $ 143,813 $ 259,053 New Hampshire $ 426,867 $ 326,967 Vermont $ 930,532 $ 964,776 Total $ 2,480,958 $ 2,603,663 What are the property apportionment factors for Maine, Massachusetts, New Hampshire, and Vermont in each of the following alternative scenarios? (Round intermediate calculations and final answers to 2 decimal places.) a. Delicious Dave’s has income tax nexus in each of the states.b. Delicious Dave’s has income tax nexus in each of the states, but the Maine total includes $470,000 of investment property that Delicious rents out (unrelated to its business). c. Delicious Dave’s has income tax nexus in each of the states, but it also pays $57,000 to rent property in Massachusetts.

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Expert Solution

a. Delicious has the following property factors
Beginning Ending Average Factor
Maine 9,79,746 10,52,867 15,06,180 39.82%
Massachusetts 1,43,813 2,59,053 2,73,340 7.23%
New Hampshire 4,26,867 3,26,967 5,90,351 15.61%
Vermont 9,30,532 9,64,776 14,12,920 37.35%
24,80,958 26,03,663 37,82,790 100.00%
b. Delicious must remove the non-business property from property factors
Beginning Ending Average Factor
Maine 5,09,746 5,82,867 8,01,180 26.03%
Massachusetts 1,43,813 2,59,053 2,73,340 8.88%
New Hampshire 4,26,867 3,26,967 5,90,351 19.18%
Vermont 9,30,532 9,64,776 14,12,920 45.91%
20,10,958 21,33,663 30,77,790 100.00%
c. Delicious has the following property factors. The annual rent ($57,000) is multiplied by 8 and thus $456,000 is added.
Beginning Ending Average Factor
Maine 9,79,746 10,52,867 15,06,180 33.72%
Massachusetts 5,99,813 7,15,053 9,57,340 21.43%
New Hampshire 4,26,867 3,26,967 5,90,351 13.22%
Vermont 9,30,532 9,64,776 14,12,920 31.63%
29,36,958 30,59,663 44,66,790 100.00%

ekkarill92 answered 1 year ago
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