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 non-business 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 non-business income allocated to Kentucky was $1,000. Assuming Kentucky's corporate tax rate of 6 percent, what is Tennis Pro's Kentucky state tax liability?
Correct Answer:
Verified
$1,356.
$220,000 (state tax base) − $40,...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
$220,000 (state tax base) − $40,...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q54: Roxy operates a dress shop in Arlington,
Q56: All of the following are False regarding
Q57: PWD Incorporated is an Illinois corporation. It
Q59: Tennis Pro has the following sales, payroll
Q61: Tennis Pro, a Virginia Corporation domiciled in
Q63: Which of the following is True regarding
Q85: Bethesda Corporation is unprotected from income tax
Q108: Purchases of inventory for resale are typically
Q114: Use tax liability accrues in the state
Q115: Businesses subject to income tax in more