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

Leave a Reply

Your email address will not be published. Required fields are marked *