CPA · Question 08 · Area V: Entity Taxation

Pace Corp. is incorporated in State A but does business in States A, B, and C. State B uses a three-factor apportionment formula (Sales, Payroll, Property) with a double-weighted sales factor. Pace has the following activity in State B:<br/>- Sales: $2,000,000 (Total company sales: $10,000,000)<br/>- Payroll: $500,000 (Total company payroll: $5,000,000)<br/>- Property: $1,000,000 (Total company property: $4,000,000)<br/>What is Pace's apportionment percentage for State B?