Form 42
                        Apportionment and Combined Reporting Adjustments
                        Include with Idaho Income Tax Return as Page 3
Name as shown on return                                                                                                Federal Employer Identification Number (EIN)

Part I.  Apportionment Formula                                                           Check if using three factor apportionment                          ▪
Property (Owned Property at Original Cost)
                                                                                           Total                        Idaho                                 Percentage
Beginning of Year
1. Inventories ...................................................................... 1  ▪                            ▪
2.  Real and tangible personal property ..............................                2  ▪                            ▪
Ending of Year
3. Inventories ...................................................................... 3  ▪                            ▪
4.  Real and tangible personal property ..............................                4  ▪                            ▪
5.  Total of lines 1 through 4 ................................................       5 
6.  Average. Line 5 divided by 2 ..........................................           6 
7.  Rented property (capitalized at 8 times rents paid) ........                      7  ▪                            ▪
8.  Total property. Add lines 6 and 7 ....................................            8  ▪                            ▪
9.  Idaho property percentage. Compute percentage to four decimal places ...........................................                                     9              %
Sales (Gross Receipts)
10. Gross sales, less returns and allowances ......................                   10 ▪
11. Sales delivered or shipped to Idaho purchasers ............                       11                              ▪
12. Idaho “throwback” sales .................................................         12                              ▪
13. Sales of services ............................................................    13 ▪                            ▪
14. Other business gross receipts ........................................            14 ▪                            ▪
15. Total gross receipts. Add lines 10 through 14 .................                   15 ▪                            ▪
16. Idaho sales percentage. Compute percentage to four decimal places ..............................................                                     16             %
17. Reserved ........................................................................................................................................... 17 
Payroll
18. Total wages and salaries .................................................        18 ▪                            ▪
19. Idaho payroll percentage. Compute percentage to four decimal places ............................................                                     19             %
20. Total Percentage. See instructions ...................................................................................................               20             %
21. Idaho Apportionment Factor. See instructions ...............................................................................                         21             %
Part II.  Combined Reporting Adjustments                                                                                Water’s Edge                          Worldwide
Additions
1.  Income of unitary foreign subsidiaries. See instructions ..................................                    1                                         ▪
2.  Federal taxable income of unitary subsidiaries not included on the federal return ....                         2  ▪                                      ▪
3.  Income of foreign corporations subject to federal taxation ...............................                     3  ▪
4.  Intercompany transactions eliminated on the federal return ............................                        4  ▪                                      ▪
5.  Other additions. Include explanation ................................................................          5  ▪                                      ▪
6.  Total additions. Add lines 1 through 5. Enter on Form 41, line 17 ....................                         6 
Subtractions
7.  Federal taxable income of nonunitary subsidiaries included on the federal return                               7  ▪                                      ▪
8. Exclusion for foreign dividends
    a. Foreign dividends ......................................................................................... 8a ▪
    b. Enter 80% if no spreadsheets filed or 85% if spreadsheets filed ................. 8b                                                              %
    c. Dividend exclusion. Multiply line 8a by line 8b .............................................               8c ▪
9.  Intercompany dividends included on the combined return ...............................                         9  ▪                                      ▪
10. Intercompany transactions included on the federal return ...............................                       10 ▪                                      ▪
11. Other subtractions. Include explanation ...........................................................            11 ▪                                      ▪
12. Total subtractions. Add lines 7, 8c, 9, 10, and 11. Enter on Form 41, line 29 .....                            12 
EFO00029 09-14-2022

                    Form 42 — Instructions
                    Apportionment and Combined Reporting Adjustments

Part I of this form provides the computation of       Line 9. Divide Idaho property by total property 
the Idaho apportionment factor and is used by         (amounts on line 8).
taxpayers who have income from business activity 
that’s taxable in Idaho and another state or country. Sales 
If the taxpayer is a partner in a partnership or a    Lines 11 and 12. Enter the amounts from line 10 
shareholder in an S corporation, the taxpayer must    that were delivered or shipped to Idaho buyers 
take into account the activity of the pass-through    (line 11) or that were throwback sales to Idaho 
entity in determining whether the taxpayer has        (line 12). A sale made in a state with no jurisdiction 
income from business activity that’s taxable in Idaho to tax the seller is a throwback sale.

and another state or country. Include the taxpayer’s           Include a detailed schedule.
                                                      Line 14.
share of the pass-through entity’s property, payroll, 
and sales numbers from Form ID K-1 in the             Line 16. Divide Idaho gross receipts by total gross 
amounts reported on this form.                        receipts (amounts on line 15.)

Part II of this form provides the worldwide and       Payroll
water’s-edge adjustments to compute combined 
                                                      Line 19. Divide Idaho wages and salaries by total 
income. Part II is used by a corporation that has 
                                                      wages and salaries (amounts on line 18).
ownership in at least one foreign affiliate.
Partnerships don’t use Part II.                       Total Percentage
Factor information is available at tax.idaho.gov.     Line 20. For taxpayers using the three-factor 
                                                      apportionment method, add the percentages on 
Part I Specific Instructions                          lines 9, 16 and 19. For all other taxpayers, use the 
                                                      percentage on line 16.
Instructions are for lines not fully explained on the 
form. Compute all percentages to four places to       Idaho Apportionment Factor
the right of the decimal point (00.0000%). Include    Line 21.  For taxpayers using the three-factor 
a schedule showing apportionment detail by            apportionment method, divide the total on line 20 
company if filing for a unitary group.                by three.  If any of the factors don’t apply to your 
Single sales factor is the default                    business, divide the total on line 20 by the number 
apportionment method. Electrical, telephone           of factors used.  For example, if your business has 
and communications corporations (as                   no employee anywhere, your factor is reduced by 
defined in Idaho Code) and MTC special                one.
industries (construction contractors, airlines,       For all other taxpayers, use the percentage on 
railroads, trucking companies, television             line 20.
and radio broadcasting, publishing, and 
financial institutions) can elect to use a three      Part II Specific Instructions
factor method. If you’re using three factor 
                                                      To the extent that amounts listed for water’s-edge 
apportionment, check this box and provide a list 
                                                      filers are different than the amounts listed for 
of the companies using the three factor method.
                                                      worldwide filers, separate instructions are listed.
All taxpayers must complete all three sections 
(property, payroll and sales) of Part I. Only         Additions

three-factor taxpayers will use all three factors to  Line 1 Income From Unitary Foreign 
compute their apportionment factor.                   Subsidiaries
Property                                              Water’s-edge Filers. Disregard this line and go 
Lines 1 through 4. Enter the beginning and end        to line 2.
of the year total property and Idaho property 
amounts.

EIN00099 09-14-2022                                                                           Page 1 of 3

                                                   Form 42 — Instructions(continued)                  

If foreign affiliates aren’t included in a         outside the United States that are required to file 
consolidated federal return, the corporation can   a federal income tax return. This includes foreign 
select one of the following options. The option    corporations filing a federal Form 1120F.
selected must be used for all foreign affiliates 
not included in a consolidated federal return and  Worldwide Filers. The income of foreign corporations 
must be adjusted for the Idaho additions and       is included on line 1.
subtractions listed on Form 41.                    Include a schedule identifying this income by 
                                                   corporation and also include copies of the federal 
Option 1. Enter the net income before income       income tax returns filed by each.
taxes stated on each affiliate’s profit and loss 
statement prepared for the United States           Line 4 Intercompany Eliminations
Securities and Exchange Commission (SEC). If       Enter the amount of intercompany transactions 
the profit and loss statement isn’t filed with the between the combined group and nonunitary 
SEC, enter the net income or loss before income    subsidiaries eliminated on the federal consolidated 
taxes reported on the profit and loss statement    return. The income of the nonunitary subsidiaries 
prepared for reporting to shareholders that’s      is a subtraction on line 7. Include a schedule 
subject to review by an independent auditor.       identifying the intercompany transactions 
                                                   by corporation.
Option 2. The net income or loss reported 
on the profit and loss statements may be           Line 5 Other Additions
adjusted to tax accounting standards as would      Enter any miscellaneous Idaho additions. Include 
be required by the Internal Revenue Code           a schedule identifying each miscellaneous addition 
(IRC) if the corporation were incorporated in the  by corporation.
United States. If a corporation chooses to make 
the book-to-tax adjustments, all book-to-tax       Subtractions
adjustments must be made for all unitary foreign 
                                                   Line 7 Federal Taxable Income of Nonunitary 
corporations not included in the consolidated 
                                                   Subsidiaries Included on the Federal Return
federal return. The book-to-tax adjustments must 
be consistently applied each year the group files  Enter the federal taxable income of nonunitary 
a worldwide return.                                subsidiaries included in the federal consolidated 
                                                   return. Include a schedule identifying the income or 
Include a schedule of the foreign affiliate income 
                                                   loss by corporation.
by corporation. Also include schedules of the 
book-to-tax adjustments, if any.                   Line 8 Dividend Exclusion
                                                   The following dividend exclusions are applicable 
Line 2 Federal Taxable Income of 
                                                   only to water’s-edge filers.
Nonconsolidated Unitary Subsidiaries
Enter the federal taxable income of unitary        a. Foreign Dividends. Enter the total amount of 
subsidiaries incorporated in the United States     dividends paid by foreign affiliates. Include 
that are more than 50% commonly owned              the amounts of income from controlled foreign 
and that weren’t included in the federal           corporations under subpart F if included in 
consolidated return. This is the amount reported   federal taxable income. Enter the income from 
on the subsidiary’s federal income tax return,     possession corporations included in line 2. 
Form 1120, adjusted for the Idaho additions        Don’t include on this line any actual dividends 
and subtractions listed on Form 41. Include a      paid by the possession corporations.
schedule identifying this income by corporation.   b. Exclusion Percentage. If you elected to forgo 
                                                   filing the water’s-edge spreadsheets as shown 
Line 3 Income of Foreign Corporations Subject      on line 8b, Form 41, enter 80%. Enter 85% 
to Federal Taxation                                if you’re filing the water’s-edge domestic 
Water’s-edge Filers. Enter the federal taxable     disclosure spreadsheets.
income reported by corporations incorporated 

EIN00099 09-14-2022                                                                          Page 2 of 3

                                                         Form 42 — Instructions(continued)                  

Line 9 Intercompany Dividends Included on      Line 10 Intercompany Transactions Included on 
the Combined Return                            the Federal Return
Enter the amount of dividends paid by one      Enter the intercompany transactions between 
member to another member of the unitary group  members of the combined group that haven’t 
that haven’t been subtracted elsewhere on this otherwise been eliminated.
form or Form 41.
                                               Line 11 Other Subtractions
Include a schedule identifying payors, payees  Enter any miscellaneous Idaho deductions. 
and dividend amounts regardless of the filing  Include a schedule identifying each miscellaneous 
method.                                        deduction by corporation.

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EIN00099 09-14-2022                                                              Page 3 of 3