Unformatted text preview: 88. Lefty provides demolition services in several southern states. Lefty has property as
Lefty is a Mississippi Corporation. Lefty also rents property in Mississippi and Tennessee
with annual rents of $50,000 and $15,000, respectively. What is Lefty's Mississippi property
89. Carolina's Hats has the following sales, payroll and property factors:
What is Carolina's Hats North and South Carolina apportionment factors if North Carolina
uses an equally-weighted three-factor formula and South Carolina uses a double-weighted
sales factor formula?
A. North Carolina 74.03 percent, and South Carolina 19.45 percent.
B. North Carolina 74.03 percent, and South Carolina 20.22 percent.
C. North Carolina 74.28 percent, and South Carolina 19.45 percent.
D. North Carolina 74.28 percent, and South Carolina 22.51 percent.
90. Which of the following is not a general rule for allocating nonbusiness income?
A. Interest and dividends to the state of commercial domicile.
B. Rental income for investment property to state of commercial domicile.
C. Rental income for business property to state where property is located.
D. Capital gains from rental property to state where property is located.
91. Della Corporation is headquartered in Carlisle, Pennsylvania. Della has a Pennsylvania
state income tax base of $425,000. Of this amount, $75,000 was nonbusiness income. Della's
Pennsylvania apportionment factor is 28.52 percent. The nonbusiness income allocated to
Pennsylvania was $61,000. Assuming a Pennsylvania corporate tax rate of 7.75 percent, what
is Della's Pennsylvania state tax liability?
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