Problem
ABC Company is headquartered in Salt Lake City, Utah and has subsidiaries located in Nebraska, Minnesota, and Louisiana. The Utah parent also has operations in Oregon, and the three subsidiaries have additional operations in Kansas, Iowa, and Texas, respectively. Information on the unitary group (assume that this is a unitary group) is as follows (assume that property is the average of beginning and ending balance sheet values):
|
|
|
Parent
(Utah)
|
|
S1
(Nebraska)
|
|
S2
(Minnesota)
|
|
S3
(Louisiana)
|
|
FTI
|
|
$800,000
|
|
$600,000
|
|
$400,000
|
|
$300,000
|
|
Of which:
|
|
|
|
|
|
|
|
|
|
State tax deduction
|
|
50,000
|
|
30,000
|
|
20,000
|
|
20,000
|
|
Interest Income
|
|
10,000
|
|
5,000
|
|
4,000
|
|
3,000
|
|
Sales to:
|
UT
|
2,000,000
|
NE
|
800,000
|
MN
|
300,000
|
LA
|
200,000
|
|
|
OR
|
300,000
|
KS
|
600,000
|
IA
|
50,000
|
TX
|
60,000
|
|
Property in:
|
UT
|
3,000,000
|
NE
|
2,000,000
|
MN
|
400,000
|
LA
|
70,000
|
|
|
OR
|
200,000
|
KS
|
0
|
IA
|
10,000
|
TX
|
60,000
|
|
Payroll in:
|
UT
|
500,000
|
NE
|
1,000,000
|
MN
|
100,000
|
LA
|
200,000
|
|
|
OR
|
100,000
|
KS
|
0
|
IA
|
0
|
TX
|
0
|
Interest income is from State of New York bonds. Assume cost of goods sold is 40% of sales, and the Texas tax rate is .4%. While there is no property owed in Kansas, there is leased property, for which $10,000 of rental income is paid by the firm each year. C
Compute taxes due for all states. Assume all entities are part of the same unitary group.