This benchmark assignment assesses the following competency: 3.2: Demonstrate the skills required to apply that knowledge in providing tax preparation and advisory services and performing other responsibilities as certified public accountants.The purpose of this assignment is to practice apportionment. You will complete two tasks: answer questions for a client in memo format and calculate the apportionment factors for a multistate business. XYZ Corporation is your client and you regularly communicate with the CFO, Danny Client.Part 1:XYZ Corporation is a calendar year taxpayer that manufacturers equipment for businesses in Arizona, Kansas, and Oklahoma. The Company headquarters are located in Arizona, but a number of the employees travel to Colorado to solicit sales from potential customers. After products are delivered to customers in Colorado, XYZ sends employees to install the products and conduct training. Does XYZ have income tax nexus in Colorado? Provide advisory services by explaining the concept of nexus to the CFO, Danny Client, using the information from Public Law 86-272.Additionally, explain the general concepts of apportionment and allocations along with the results from Part 2 of this assignment with regard to the financial impact to XYZ Corporation for conducting business in multiple states.The memo should be between 250-500 words.Part 2:Utilize the State Apportionment resource to complete this part of the assignment.Provide tax preparation by computing XYZs apportionment factors for all three states. For at least one of the states (not all three), prepare the apportionment form using the income tax return forms for the current tax year. For example, use Form 120 for Arizona, Form K-120 for Kansas, or Form 512 for Oklahoma. You are only required to complete the apportionment schedule, not the entire tax return. Assume XYZ generates $100,200,000 of total revenue. (2018 State of Arizona Tax Rate 4.9%, Kansas 7%, Oklahoma 6%).