Potato King, Inc. was incorporated in Idaho. It has production,
distribution, and sales facilities in both Idaho and Oregon. All of
its customers reside in either Idaho or Oregon. For purposes of the
following questions, assume that both states use the UDITPA formula,
without modification, for apportionment of income. Use the following
information to calculate:
1) The components of the UDITPA formula for each state.
2) The percentage of income that is subject to tax in each state.
Oregon Idaho Total
Gross receipts/Sales $2,500,000 $1,000,000 $3,500,000
Payroll expenses 195,000 223,000 418,000
Property Costs 5,080,000 520,000 5,600,000