mckay corporation operates in two states as indicated below this year rsquo s operat 699306

McKay Corporation operates in two states, as indicated below. This year’s operations generated $300,000 of apportion able income.

State A

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State B

Total

Sales

$600,000

$400,000

$1,000,000

Property

300,000

300,000

600,000

Payroll

200,000

50,000

250,000

Compute McKay’s State A taxable income assuming that State A apportions income based on a:

a. Three factor formula, equally weighted.

b. Double weighted sales factor.

c. Sales factor only.

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