Final answer:
The state taxable income for Norris Corporation in State A, after applying the apportionment factor to the tax base and adding the state's share of allocable income, should be $69,000. However, this answer is not among the provided options, which suggests there might be an error in the options listed.
Step-by-step explanation:
The calculation of Norris's state taxable income in State A involves applying the apportionment factor to the tax base and adding State A's share of allocable income. The apportionment factor (0.65) is applied to the tax base ($100,000), resulting in $65,000. Then, we add State A's share of the allocable income ($4,000) to get the total state taxable income for Norris Corporation in State A.
State Taxable Income = (Tax Base × Apportionment Factor) + State's Share of Allocable Income
State Taxable Income for Norris Corporation = ($100,000 × 0.65) + $4,000
State Taxable Income for Norris Corporation = $65,000 + $4,000
State Taxable Income for Norris Corporation = $69,000
However, $69,000 is not one of the options provided. The closest option to our calculation is $65,000, which appears to be a mistake because it does not include the share of allocable income. The correct state taxable income should be $69,000, as shown by the calculations above. The options provided may incorrectly omit adding the allocable income, or there may be an error in the provided options.