Peete Corporation Is Subject to Franchise Tax in State Z

Peete Corporation is subject to franchise tax in State Z.The tax is imposed at a rate of 2% of the taxpayer's net worth that is apportioned to the state by use of a two factor (sales and property equally weighted) formula.The property factor includes real and tangible personal property,valued at historical cost at the end of the taxable year.
Sixty percent of Peete's sales are attributable to Z,and $200,000 of the cost of Peete's tangible personal property is located in Z.
Determine the Z franchise tax payable by Peete this year,given the following end-of-the year balance sheet.

A) $8,000.
B) $4,800.
C) $3,280.
D) $2,050.