Valdez Corporation,a calendar-year taxpayer,owns property in States M and O.Both M and O require that the average value of assets be included in the property factor.M requires that the property be valued at its historical cost,and O requires that the property be included in the property factor at its net depreciated book value.

Valdez's O property factor is:

Question

Valdez Corporation,a calendar-year taxpayer,owns property in States M and O.Both M and O require that the average value of assets be included in the property factor.M requires that the property be valued at its historical cost,and O requires that the property be included in the property factor at its net depreciated book value.
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Valdez's O property factor is:

Quizplus · Accepted Answer

To calculate the property factor for O, we need to divide the net depreciated book value of property in O by the total net depreciated book value of all property owned by Valdez. Let's assume the net depreciated book value of property in O is $50,000 and the total net depreciated book value of all property owned by Valdez is $134,000.

The property factor for O would be: 
$50,000 ÷ $134,000 = 0.3731 or 37.3% (rounded to one decimal place)

Therefore, the best answer is B) 37.2%.

Valdez Corporation,a Calendar-Year Taxpayer,owns Property in States M and O