Kim Corporation, a calendar year taxpayer, has manufacturing facilities in States A and B. A summary of Kim's property holdings follows:

$\text { End of Year }$
$\begin{array}{rrr}
&\text { State A } & \text { State B } & \text { Total } \
\text { Inventory }&\$ 400,000 & \$ 100,000 & \$ 500,000
\end{array}$

*Unrelated to Kim's regular business and operations.
Determine Kim's property factors for the two states. State A's statutes provide that the average historical cost of business property is to be included in the property factor. State B's statutes provide that the property factor is based on the average depreciated basis of in-state business property.

Question

Kim Corporation, a calendar year taxpayer, has manufacturing facilities in States A and B. A summary of Kim's property holdings follows:

$\text { End of Year }$
$\begin{array}{rrr}
&\text { State A } & \text { State B } & \text { Total } \
\text { Inventory }&\$ 400,000 & \$ 100,000 & \$ 500,000
\end{array}$

*Unrelated to Kim's regular business and operations.
Determine Kim's property factors for the two states. State A's statutes provide that the average historical cost of business property is to be included in the property factor. State B's statutes provide that the property factor is based on the average depreciated basis of in-state business property.

Quizplus · Accepted Answer

The Answer of Kim Corporation, a calendar year taxpayer, has manufacturing facilities in States A and B. A summary of Kim's property holdings follows:

$\text { End of Year }$
$\begin{array}{rrr}
&\text { State A } & \text { State B } & \text { Total } \
\text { Inventory }&\$ 400,000 & \$ 100,000 & \$ 500,000
\end{array}$

*Unrelated to Kim's regular business and operations.
Determine Kim's property factors for the two states. State A's statutes provide that the average historical cost of business property is to be included in the property factor. State B's statutes provide that the property factor is based on the average depreciated basis of in-state business property.

Kim Corporation, a Calendar Year Taxpayer, Has Manufacturing Facilities in States