1. (a) The total water's edge business income of the unitary business subject to apportionment is the federal taxable income of the water's edge combined group as determined under AS 43.20.145(b) and 15 AAC 20.300.
2. (b) Royalties and dividends not excluded from taxable income under AS 43.20.145(b)(1) and (3) replace the attribution of expenses to the dividend and royalty income excluded under AS 43.20.145 and are in lieu of any disallowance of expenses.

(Eff. 7/9/93, Register 127; am 3/6/98, Register 145)

Authority: AS 43.05.080, AS 43.20.145