Essay
Tennis Pro is headquartered in Virginia. Assume it has a Kentucky state income tax base of $220,000. Of this amount, $40,000 was nonbusiness income. Assume that Tennis Pro's Kentucky sales, payroll, and property apportionment factor are 12, 5, and 3 percent, respectively. Assume that Kentucky uses a single-factor sales formula apportionment method. The nonbusiness income allocated to Kentucky was $1,000. Assuming Kentucky's corporate tax rate is 6 percent, what is Tennis Pro's Kentucky stateincome tax liability?
Correct Answer:
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$1,356.
$220,000 (state tax base)− $40,0...View Answer
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Correct Answer:
Verified
$220,000 (state tax base)− $40,0...
View Answer
Unlock this answer now
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