McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick

Exercise 18

Brady Corporation is a Nebraska corporation, but owns business and investment property in surrounding states as well. Determine the state where each item of income is allocated.$15,000 of dividend income. $10,000 of interest income. $15,000 of rental income for South Dakota property. $20,000 of royalty income for an intangible used in South Dakota (where nexus exists). $24,000 of royalty income from Kansas (where nexus does not exist). $15,000 of capital gain from securities held for investment. $30,000 of capital gain on real property located in South Dakota.