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

Exercise 51

Brady Corporation has the following items of taxable income.Brady 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.