Question

Regarding the apportionment formula used to compute state taxable income, does each of the following independent characterizations describe a taxpayer that likely is based in-state or out-of-state?

a. The sales factor is positively correlated with the payroll, but not the property, factor.

b. The sales factor is much higher than the property and payroll factors.

c. The property and payroll factors are much higher than those for other nexus states.

d. The sales and payroll factors are low, but the property factor is very high.

e. The sales factor is remaining constant, but the payroll factor is decreasing.

Answer 1

The sales factor is much higher than the property and the payroll factors probably that is only out –of-states.
The property and the payroll factors are way much higher than those for other nexus states probably in-state.
Sales factor is usually positively correlated with the payroll but not the property factor that is probably out-of-states.
The Income Apportionment Formulas
1.The three-Factor Formula – usually uses the three fractions that is representing the ratios of a company's property, the payroll plus sales that is within a taxing state to its total property, total payroll plus total sales.
2.The three-Factor Formula plus an Extra Weighting for the Sales –usually uses the same three factors but does do gives extra weight to the sales when the three are usually multiplied.
3.The single-Factor Formula – usually apportions the income for tax uses to using only ratio of the company's in-state to its total sales.

Into conclusion, additional problems addressed by different states that is differently usually relates to how different factors like the sales, the property plus the payroll usually are calculated.