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Happy Hippos (HH) is a manufacturer and retailer of New England crafts headquartered in Camden, Maine. HH provides servi

Posted: Tue Nov 16, 2021 9:21 am
by answerhappygod
Happy Hippos (HH) is a manufacturer and retailer of New England
crafts headquartered in Camden, Maine. HH provides services and has
sales, employees, property, and commercial domicile as follows:
HH’s sales of goods and services by state are as
follows:
HH has federal taxable income of $290,772 for the current year.
Included in federal taxable income are the following income and
deductions:
Other relevant facts include:
HH’s payroll is as follows:
HH’s property is as follows:
(Leave no answer blank. Enter zero if applicable. Except
as directed, round your final answers to the nearest whole dollar
amount.)
a. Determine the states in which HH has
sales tax nexus, assuming these states have
passed Wayfair legislation. (Select
all that apply.)
b. Calculate the sales tax HH must remit
assuming the following (hypothetical) sales tax
rates:
c. Determine the states in which HH has
income tax nexus. (Select all that
apply.)
d. Determine HH’s state tax base for
Maine, assuming federal taxable income of $290,772.
e. Calculate business and nonbusiness
income.
f. Determine HH’s Maine apportionment factors
using the three-factor method (assume that Maine is a
throwback state). (Round your answers to 2 decimal
places.)
g. Calculate HH’s business income
apportioned to Maine. (Round all apportionment factors
to 2 decimal places.
h. Determine HH’s allocation of
nonbusiness income to Maine.
i. Determine HH’s Maine taxable
income.
j. Calculate HH’s Maine income tax liability,
assuming a Maine income tax rate of 5 percent.