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more_on_payroll_solution

more_on_payroll_solution - formula for each state State D...

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Solution : More on the payroll factor Lowell Corporation’s sales and manufacturing plants are located in State D and State E. For purposes of apportionment State D defines payroll as all compensation paid to all employees, including contributions to 401(k) deferred compensation plans. Under the statutes of State E, neither compensation paid to officers nor contributions to 401(k) plans are included in the payroll factor. Lowell incurred the following personnel costs: State D State E total Wages and salaries - other than officers 350,000 250,000 600,000 Salaries for officers 150,000 100,000 250,000 Contributions to 401(k) plans 30,000 20,000 50,000 530,000 370,000 900,000 Required : Compute the payroll factor that Lowell would use in their apportionment
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Unformatted text preview: formula for each state. State D State E total Wages and salaries - other than officers 350,000 250,000 600,000 Salaries for officers 150,000 100,000 250,000 Contributions to 401(k) plans 30,000 20,000 50,000 530,000 370,000 900,000 State D Wages and salaries - other than officers 350,000 600,000 Salaries for officers 150,000 250,000 Contributions to 401(k) plans 30,000 50,000 530,000 900,000 State D's payroll factor 58.89% State E Wages and salaries - other than officers 250,000 600,000 State D's payroll factor 41.67% Total payroll factor State D's payroll factor 58.89% State E's payroll factor 41.67% 100.56%...
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