Ashton corporation is headquartered in pennsylvania and has a state income tax base there of $549,000. of this amount, $77,000 was nonbusiness income. ashton’s pennsylvania apportionment factor is 42.35 percent. the nonbusiness income allocated to pennsylvania was $52,500 assuming a pennsylvania corporate tax rate of 8.25 percent, what is ashton’s pennsylvania state tax liability? (round your answer to the nearest whole dollar amount.)

State Tax liability = $20822

Explanation:

given data

state income tax base = $549,000

non business income = $77,000

apportionment factor = 42.35 percent

non business income = $52,500

corporate tax rate = 8.25 percent

to find out

what is Ashton’s Pennsylvania state tax liability

solution

we get here State Tax liability that is express as

State Tax liability = [ { (tax base - non business income) × apportionment factor } + non business income] × tax rate       1

put here value we get

State Tax liability = [ { (tax base - non business income) × apportionment factor } + non business income] × tax rate

State Tax liability = [ { (549,000 - 77,000 ) × 42.35% } + 52,500 ] × 8.25 %

so State Tax liability = $20822

what

explanation: