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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 4.00 percent, and State N’s corporate tax rate is 7.50 percent. This year, Oldham had the following sales, payroll, and property (in thousands of dollars) in each state: State M State N Total Gross receipts from sales $ 4,400 $ 8,900 $ 13,300 Payroll expense 2,200 2,600 4,800 Property costs 2,300 2,400 4,700 If Oldham’s before-tax income was $4.4 million, compute its State M and State N tax.
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Oldham Inc. conducts business in State M and State N, which both use the UDITPA three-factor formula...
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