Bert Corporation, a Calendar Year Taxpayer, Owns Property in States $\text { Account Balances at Beginning of Year }$

Bert Corporation, a calendar year taxpayer, owns property in States M and O. Both states require that the average value of assets be included in the property factor. State M requires that the property be valued at its historical cost, and State O requires that the property be included in the property factor at its net depreciated book value. $\text { Account Balances at Beginning of Year }$
$\begin{array}{lrrr} & \text { State } M & \text { State } O & \text { Totals } \\\text { Inventories } & \$ 200,000 & \$ 300,000 & \$ 500,000 \\\text { Building \& machinery (cost) } & 700,000 & 300,000 & 1,000,000 \\\text { Accumulated depreciation } & (150,000) & (50,000) & (200,000) \\\text { Land } & 400,000 & 200,000 & 600,000\end{array}$ $\begin{array}{llcc} \text { Totals } &\$1,150,000&\$750,000&\$1,900,000 \\\end{array}$

$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Account Balances at Year-End }$
$\begin{array}{lrrr} & \text { State \( M \) }& \text { State \( O \) }& \text { Totals}\\\text { Inventories } & \$ 400,000 & \$ 100,000 & \$ 500,000 \\\text { Building \& machinery (cost) } & 800,000 & 500,000 & 1,300,000 \\\text { Accumulated depreciation } & (300,000) & (100,000) & (400,000) \\\text { Land } & \underline{400,000} & \underline{200,000} & \underline{600,000} \\\text { Totals } & \underline{\$ 1,300,000} & \$ \underline{\$ 700,000} & \underline{\$ 2,000,000} \\\end{array}$

$\begin{array}{ll}\text { Annual rent payments } & \underline{\underline{\$ 50,000}} & \underline{\$ 25,000} \\\text { Bert's State M property factor is: }\end{array}$

A) 75.0%.
B) 66.7%.
C) 64.9%.
D) 64.5%.