Questions from Taxation

Q: Oldham Inc. conducts business in State M and State N,

Oldham Inc. conducts business in State M and State N, which both use the UDITPA three-factor formula to apportion income. State M’s corporate tax rate is 4.5 percent, and State N&aci...

Q: Refer to the facts in the preceding problem. Compute Oldham’s State

Refer to the facts in the preceding problem. Compute Oldham’s State M and State N tax if State N uses an apportionment formula in which the sales factor is double-weighted. Data fro...

Q: Refer to the facts in problem 4. Compute the state income

Refer to the facts in problem 4. Compute the state income tax savings if Oldham could relocate its personnel so that payroll expense in State M increased to $1,900 (thousand) and payroll expense in St...

Q: Cromwell Corporation does business in two states, A and B.

Cromwell Corporation does business in two states, A and B. State A uses an equal-weighted three-factor apportionment formula and has a 5 percent state tax rate. State B uses an apportionment formula t...

Q: Lido Inc. does business in two states, X and Y

Lido Inc. does business in two states, X and Y. State X uses an equal weighted three-factor apportionment formula and has a 4 percent state tax rate. State Y bases its apportionment only on the sales...

Q: Turbo is a U.S. corporation. This year,

Turbo is a U.S. corporation. This year, it earned $5 million before-tax income and paid $175,000 income tax to jurisdictions other than the United States. Compute Turbo’s U.S. federal income tax assum...

Q: Mr. and Mrs. Simpson have the following income items.

Mr. and Mrs. Simpson have the following income items. Mr. Simpson’s Schedule C net profit ………………………..$91,320 Mrs. Simpson’s Schedule C net loss ………………………….(7,480) Mrs. Simpson’s taxable pension ……………...

Q: Ms. Timmons, an unmarried individual, has the following income

Ms. Timmons, an unmarried individual, has the following income items. Schedule C net profit …………………………………..$31,900 NOL carry forward deduction ………………….…….(9,190) Interest income ……………………………………..…………....

Q: Mr. Perry is an unmarried individual with no dependent children.

Mr. Perry is an unmarried individual with no dependent children. He reports the following information. Wages ……………………………………………………………………….$65,000 Schedule C net profit ……………………………………………………..11,650 Int...

Q: French Corporation wishes to hire Leslie as a consultant to design a

French Corporation wishes to hire Leslie as a consultant to design a comprehensive staff training program. The project is expected to take one year, and the parties have agreed to a tentative price of...