How much of José Corporation's taxable income is apportioned to State Z?

To determine how much of José Corporation's taxable income is apportioned to State Z, one must consider the factors that influence income apportionment, typically including the sales, payroll, and property located within the state. Apportionment formulas vary by state, but generally rely on a weighted average that reflects the business activities attributable to each state.

In this case, with $180,000 being apportioned to State Z, it implies that this amount results from the apportionment formula applied to José Corporation’s total taxable income. This figure indicates that a proportionate share of income is connected to business operations or activities that occurred in State Z. It reflects both the sales made in the state and possibly other factors such as employee locations or property held within the state.

The other amounts do not represent the correct apportionment under the applicable tax law or formula. For instance, amounts like $1,000,000 or $900,000 may suggest a misunderstanding of how income is divided among jurisdictions based on the specific apportionment rules. Meanwhile, stating that $0 pertains to State Z could denote that José Corporation has no taxable presence or activities within that state, which contradicts the premise that $180,000 is indeed attributed to it.

Understanding