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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
21.  LO.4 Legends Corporation owns and operates two manufacturing facilities, one in State A and the other in State B. Due to a temporary decline in sales,  Legend
has rented 25% of its State A facility to an unaffiliated corporation. Legend generated
$200,000 net rent income and $1,400,000 income from manufacturing. Both states classify the rent income as allocable (nonapportionable) income. By applying the statutes of each state, Legends determines that its apportionment factors are .70 for A and .30 for B.
How much income is subject to tax in:
a.     State A?
b.    State B?
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