Section 35-3-08-06-401.05 - DIVISIONAL ACCOUNTING1. If the total net business income of a division or divisions of the taxpayer is derived solely from business activities in Mississippi and such division or divisions, when considered the same as a separate entity, are not taxable in another state, the total net business income derived from a trade or business activity of such division or divisions shall be directly assigned to Mississippi. Business income, on a company-wide basis, derived from sales of capital assets, interest, dividends, rent and royalties shall be apportioned to Mississippi in the ratio that total sales of the included division or divisions bears to total company-wide sales everywhere. Non-business income of the taxpayer shall be allocated to Mississippi in accordance with the further provisions of this Regulation.2. If the business income of a division or divisions of the taxpayer is derived from business activities both within and without the state and by reason of such business activities such division or divisions, when considered the same as a separate entity, are taxable in another state, Mississippi taxable income shall be computed and determined as follows: a. The total net business income derived from a trade or business activity of each division doing business in Mississippi shall be determined on a divisional direct or separate accounting basis. In determining the net business income for each division, a proportionate part of non-allocable general and administrative expenses may be deducted by using the ratio that total sales (gross receipts) of each division bears to total company-wide sales (gross receipts).b. Business income, on a company wide basis, derived from the sale of capital assets, interest, dividends, rents and royalties shall be apportioned to each division in the ratio that total sales (gross receipts) by the division bears to total company wide sales (gross receipts).c. The amounts determined in the above paragraphs, shall be combined of each division. If more than one division is involved, separate combinations are required for each division.d. To the combined amount determined in the previous paragraph, for each division, there shall be applied the apportionment formula specified in this Regulation for the trade or business activity of the division. Separate computations are required for each included division. The amount so apportioned to Mississippi for each division may be combined to determine the total apportioned amount of business income of the taxpayer assignable to Mississippi.e. The non-business income of the taxpayer shall be allocated to Mississippi in accordance with the further provisions of this Regulation.f. The total of the amount apportioned and the total of the amount allocated for all divisions when combined, shall constitute the Mississippi taxable income of the taxpayer.35 Miss. Code. R. § 3-08-06-401.05